Originally Posted by Philip Hoyle
VAT is charged on everything
Perhaps this is not so in the "simple" tax that is VAT!
The OP should refer to Business Brief 10/04 which states that even agencies which contract directly with workseekers (making them principals) could act from a VAT perspective as though they were agents - meaning that they should only charge VAT on their profit - not the full invoice value.
Of course this assumes that the contractor is not on the OP's payroll - in which case the agency would be a principal and then charge VAT on the invoice value.