PPH charging VAT to the freelancer

[Blacklaw]

I do freelance work on PeoplePerHour, and when they pay me, they charge me VAT.

Normally you provide a service to someone, you are charging VAT on your invoice to the person paying you, not the other way round, yet that is exactly what PPH are doing.

Perhaps someone who understands accounting law can explain to me how this works and how it's legal for them to charge me VAT when they are the ones paying for work I have done.

 

[bodgitt&scarperLTD]

I do freelance work on PeoplePerHour, and when they pay me, they charge me VAT.

Normally you provide a service to someone, you are charging VAT on your invoice to the person paying you, not the other way round, yet that is exactly what PPH are doing.

Perhaps someone who understands accounting law can explain to me how this works and how it's legal for them to charge me VAT when they are the ones paying for work I have done.

I'd say it's most probable that they are charging you VAT on their commission. A real accountant will no doubt be along shortly, but that's the most likely explaination to my mind.

 

[Frank the Insurance guy]

Are they charging you, or your customers VAT?

I suspect that they charge your customer VAT and therefore this is removed from the calculation of what PPH pay you (ie. they pay you after deduction of the VAT).

 

[AlanJ1]

Are they charging you, or your customers VAT?

They charged me VAT when I last used the service as a buyer. Never sold on there though so can't advise on that part!

 

[Paul Kelly ICHYB]

What did they say when you asked PPH about the VAT charge?

Also, why are they paying you, if you are the buyer?

 

[AlanJ1]

What did they say when you asked PPH about the VAT charge?

Also, why are they paying you, if you are the buyer?

He is the seller. He said he does freelance work on PPH.