Reply to post: Re: Life goes on.

Royal Bank of Scotland IT contractor ban sparks murmurs of legal action

PerlyKing Silver badge
Facepalm

Re: Life goes on.

I don't think you know how VAT works.

VAT is a tax on the end user, only raising revenue on retail goods and services. A VAT-registered contractor charges VAT to the client and pays it to HMRC (roughly, there is also the Flat Rate Scheme), from whom it is then reclaimed by the VAT-registered client. So in this case VAT raises no actual revenue for HMRC.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

SUBSCRIBE TO OUR WEEKLY TECH NEWSLETTER

Biting the hand that feeds IT © 1998–2020