Find solution
Do you pay vat on gross earnings?

Tax and VAT on when running an online agency?

  • I want to start an online agency offering services around the region to begin with. I hope to have each 'specialist' in place and each time they get a job because of my agency's reccomendation, i deduct 15% of their earnings. Now i hope that if its a job with a school etc i will get paid directly via BACS, deduct 15% then send the rest on to the employee but how on earth do i deduct their income tax along the way? What if they are at a home and get paid by cash how do i make sure they pay tax? Do they even have to pay tax? Also how do i put VAT on my rates etc Thankyou!

  • Answer:

    If you employ people you are legally responsible for the tax accounting. You need to be VAT registered to worry about VAT. You need to pay for an hour or so chat with an accountant who will set up everything for you properly. Normally you would bill or invoice their employer the equivalent of 15% of their wages (or maybe 1 months wages). The employee will know nothing about this arrangement.

Samuel Unwin at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

You're nothing like ready to push the 'go' button. Do your homework before everything gets under way and you'll save a lot of grief later! At the moment it sounds incredibly amateurish, which is a pity - it could be a great idea. Are people going to be your employees? If so, you are liable for the standard of the work they perform. You may be liable anyway as their principal, even if you are only acting as an agency, so make sure you have proper insurance cover in place. The Revenue's website has masses of relevant info, including the various VAT schemes. Also see: www.businesslink.gov.uk http://www.hmrc.gov.uk/selfemployed/tmastarting-up-in-business.shtml http://www.startupbritain.org/

Jo W

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.