Note: If you're looking for information on Agency taxes in the UK click here.
EMPLOYER TAX SUMMARY FOR THE UK
RecruitiFi does not charge VAT, but if your company is registered for VAT in the UK, you should be applying reverse charges to the transactions.
The services are being supplied to our Employers in the U.K. (see here).
However, RecruitiFi is the supplier, and we have no physical presence in the U.K. We are treated as a non-established taxable person (NETP). RecruitiFi is making an overseas supply of services to our U.K. Employers. Under the B2B rules for overseas suppliers, RecruitiFi is not required to register with HMRC, and cannot charge VAT.
Employers that are registered to pay VAT in the UK should be applying reverse charges to these transactions.
More details can be found on the HMRC website.
Is there a a threshold where you'll begin charging?
No. The threshold only applies to physical goods. There is no threshold for overseas supply of services in the U.K.
Does it matter where the agency is from?
No. Employers are not directly contracted with any Agencies. Employers are contracted with RecruitiFi and pay RecruitiFi for the services. Even if an Employer and an Agency had a prior relationship, the RecruitiFi Terms supersede their previous contracts for the duration of their engagement on RecruitiFi.
The Agencies are consultants who are contracted with RecruitiFi. Where the agency is located does not factor into the tax situation.
Tags: United Kingdom, UK, U.K., taxes, tax, VAT, service taxes