Reply to post: Re: Life goes on.

Royal Bank of Scotland IT contractor ban sparks murmurs of legal action

Anonymous Coward
Anonymous Coward

Re: Life goes on.

It doesn't matter at all that they don't charge VAT on their services. As long as they are VAT registered (and they will be) then they *can* reclaim VAT on their spends (with some exceptions). If HMRC end up owing them VAT as a result then HMRC will indeed hand over that cash. It also happens if a company manufactures products in the UK (paying VAT on inputs) but sells overseas (so no VAT on those outputs).

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