barneyman
25th July 2010, 16:31
Hello and for my first post I hope this is not too much of a request...Maybe i am missing something obvious but to me it seems that I should.
Here is my situation:
I started working self employed from April this year as a recruitment consultant. I am working exclusively for a consultancy (the "employer" for simplicity) and set up a limited company for myself.
I do not expect my turnover in year one to be more than 70k so had not initially registered for VAT.
However, it now occurs to be that maybe I should for the following reason:
When, as working for the employer under their trading name, I place a candidate in a new role, the company who is taking on the candidate receives an invoice from my employer which includes VAT (as the employer is registered and has turnover over 70K)
I would in turn invoice the employer for my fee, which at the moment would be with no vat. My employer will be the only entity receiving an invoice for my services, so there is no point in appearing "cheap" to my customers.
So if my only customer is more than willing and expecting to receive invoices with VAT, I might as well register, so I can then reclaim VAT on my purchases. In year one this has been reasonable; laptops, setup costs, travel etc and of course all the costs of working from home; heat, light, broadband.
I am right in my assumptions here?
Many thanks in advance of any help, views etc
Here is my situation:
I started working self employed from April this year as a recruitment consultant. I am working exclusively for a consultancy (the "employer" for simplicity) and set up a limited company for myself.
I do not expect my turnover in year one to be more than 70k so had not initially registered for VAT.
However, it now occurs to be that maybe I should for the following reason:
When, as working for the employer under their trading name, I place a candidate in a new role, the company who is taking on the candidate receives an invoice from my employer which includes VAT (as the employer is registered and has turnover over 70K)
I would in turn invoice the employer for my fee, which at the moment would be with no vat. My employer will be the only entity receiving an invoice for my services, so there is no point in appearing "cheap" to my customers.
So if my only customer is more than willing and expecting to receive invoices with VAT, I might as well register, so I can then reclaim VAT on my purchases. In year one this has been reasonable; laptops, setup costs, travel etc and of course all the costs of working from home; heat, light, broadband.
I am right in my assumptions here?
Many thanks in advance of any help, views etc