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New client

colls10colls10 Norwich AATQB Posts: 24
Hi all. Saw a similar question and thought I’d post mine for any thoughts . New client. Is pub manager and 20%shareholder. Owner of pub pays client 20%net of vat of bar takings. Client then pays the staff through payroll from his 20%. The owner takes 20% vat from clients pay prior to paying him ( as till bar takings so the vat would have to be paid ) clients income is classed as managers fees . Does this seem like a normal set up ? My client could not claim the vat from his fees back could he ? I think this may just be the way it’s shown as bar takings less vat then 20% manger fees .

Answers

  • Buhir_the_BookkeeperBuhir_the_Bookkeeper Cardiff & BristolRegistered Posts: 25
    Hi This sounds very confusing
    Payroll has nothing to do with VAT as it is outside of the scope.
    If the client or the owner was charging to be paid against a sales invoice as a contractor this seems odd as well. Surely the owner should be paid Divs which are also outside of the scope of VAT.
    I would expect Income from till to be vatable.
    Amounts to be paid to staff outside the scope of vat so not vat reduction
    Amounts paid to the shareholder either to be in salaries or dividends which are also outside the scope of VAT so not Vat charged her?
    The above question seems a bit confusing try breaking it down a bit or calling me on 07727664215 for help.
    Managers fees if a contractor would have to be checked for IR35 as well.
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