Reply to post: If you're going to treat contractors as employees, kiss the VAT goodbye.

If you're going to treat contractors as employees, kiss the VAT goodbye.

At 20% I'd say they're missing out, if your client is selling/providing exempt goods or services (commonly financial services, or government agencies who don't sell anything). Of course, if HMRC are double dipping and still making contractors charge VAT, then they can go spit. The Irish Revenue tried that on over 15 years ago.