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Hi everybody! I hope it's not a too wrong place to ask for accounting related question
How do you pay tax as a freelancer platform. Let's take an example: peopleperhour.com is a UK based freelancer platform and if I register there as a UK based freelancer and then I pay 20% + VAT their service fee in the beginning but just 3,5% once I have billed my customer through their platform already for more than £5k in total. So let's take an example with 3,5%: If I bill customer £100, I will be charged 20% + VAT that is £3.50 + 20% VAT = £4.20 so they pay to my account £95.80 and I guess pay tax just the VAT amount and keep the profit £3.50 and pay tax of that only if they take profit out of the company and if they re-invest that £3.50 then they don't pay any tax. Is that then correct that you don't need to pay any other tax if you're a freelancer platform than VAT of your profit? If you hire someone there are many taxes but if you're a freelancer platform then you don't pay tax? Or do you need to register yourself somehow to be able to act like that?
How do you pay tax as a freelancer platform. Let's take an example: peopleperhour.com is a UK based freelancer platform and if I register there as a UK based freelancer and then I pay 20% + VAT their service fee in the beginning but just 3,5% once I have billed my customer through their platform already for more than £5k in total. So let's take an example with 3,5%: If I bill customer £100, I will be charged 20% + VAT that is £3.50 + 20% VAT = £4.20 so they pay to my account £95.80 and I guess pay tax just the VAT amount and keep the profit £3.50 and pay tax of that only if they take profit out of the company and if they re-invest that £3.50 then they don't pay any tax. Is that then correct that you don't need to pay any other tax if you're a freelancer platform than VAT of your profit? If you hire someone there are many taxes but if you're a freelancer platform then you don't pay tax? Or do you need to register yourself somehow to be able to act like that?