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UK VAT is 20% on most of the items it applies to Most contractors are in a position to claim it back if they're also charging it
by youngtaff 4y ago
UK VAT is 20% on most of the items it applies to
Most contractors are in a position to claim it back if they're also charging it
- Nextgrid 4y agoOnly claim it back on company expenses. I think what the parent is referring to is that individuals get taxed twice - once when they acquire the money (whether NI via employment, or dividend tax via limited-company self-employment) and then a second time when they spend it because most of what they spend it on includes VAT.
- denton-scratch 4y agoThat's exactly what I meant; except that although you mentioned NI, you didn't mention income tax. Dividend is irrelevant - I was referring to individual employees (sorry - didn't make that clear). The government (doesn't matter which colour, they're the same) make a huge deal about income tax rates, tax-free thresholds and so on. Income tax is a smaller part of my tax outgoings than VAT, by a long chalk. (Well, it was when I was earning; now I'm retired, I don't earn income, and nearly all my taxes are VAT).