Agents

The VAT rules for those acting as agents for third parties can be complex and confusing, and it is not always easy to arrive at a solution.

If you are acting as an agent for a third party, what is your VAT liability?

This was a situation I found with a car parking agency, whose business model covered every permutation possible and whose customers ranged from large commercial car park operators to private individuals with an available front drive.

The agency worked for a mix of businesses and individuals, on a disclosed and undisclosed basis. The clients of our agent had customers (the people parking) who were a mix of VAT-registered businesses and consumers.

I worked with the agency to arrive at a thorough understanding of its business and the capabilities of its accounting system.

I then provided the agency with a solution that was compatible with HMRC’s rules and with the needs of its customers, while at the same time being capable of operation without a change of accounting system.

If this situation is familiar, and you are acting as an agent for a third party and need some support on getting your VAT right, please get in touch.

To discuss how this may affect your clients or your business, or to talk about a VAT issue in general, please get in touch.
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