is this the pits or what? vat levied on paid commission??

NOAH

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A friend of mine is self employed part time 2 days per week. does work that is commission based with a small allowance and also gets a 5% payment based on revenue collected. Earnings can fluctuate wildly but its a bit of fun.

However, this month, pay was late going into bank account, when it did go in it was wrong amount, this was recalled and pay finally went in following day. Pay should have gone in by 30th June did not arrive until 6th july. It was then checked and found to be wrong, too little paid. No explanation, no contact even. Most of this can be tolerated as this appears to be the norm.

However, it was noticed this month that the magic letters inc VAT were added to the commission payment and the 5% revenue payment. It does not say how much VAT ie the rate. No explanation and there is no mention of VAT in the original agreement.

Is this legal? Why show VAT now? Why no explanation? What are the VAT implications for the individual? Will VAT be payable if income exceeds ?25,000.

This is the same company that increased commission rates and then said " Oh that was a mistake!" and never paid the increase.

The agreement is as an agent for the company. It appears that this is a form of slave labour and is getting worse. I know the option is to leave but at the moment that is not an option.

Is there any re-dress in this country against this type of practice/treatment?

noah
 
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