Hi, just a quick question, usually when completing a VAT return you wouldn't include wages in the Box 7 - Total Net Purchases. However with a payroll umbrella company, would I include the wages paid in here?
Basically they raise an invoice to a recruitment agency. The invoice is paid virtually straight away, this money received includes VAT and the net is treated as the sales figure. The company then pays out the wages due to the employees. Should these wages be classed at net purchases?
