Hi,
I have a normal PAYE job but I'm starting to do some consultancy work on the side. I've set up my own company for this and I'm in the process for registering for VAT. The company that I will be doing for the work for are based in the UK. They have advised that I don't charge them VAT and instead do a reverse charge for VAT when I invoice them. I don't understand how this works. Do I pay the VAT? If so, am I losing out on 23% of my hourly rate?
Thanks,
Mick.
I have a normal PAYE job but I'm starting to do some consultancy work on the side. I've set up my own company for this and I'm in the process for registering for VAT. The company that I will be doing for the work for are based in the UK. They have advised that I don't charge them VAT and instead do a reverse charge for VAT when I invoice them. I don't understand how this works. Do I pay the VAT? If so, am I losing out on 23% of my hourly rate?
Thanks,
Mick.