Okay, this topic appears from time-to-time and generally I think I understand one aspect of it, but maybe not another -

MOT and VAT. We sub-contract MOTS and charge as follows:

MOT (No VAT) and a separate service charge for managing the MOT which is subject to VAT.

My question is can the whole amount be rolled into one and therefore VAT applied to the whole amount?

We would not want to change the way we charge as obviously it is beneficial to the customer but Ian and I are having a (heated!) discussion on the options.

This then brought up the subject of sub-contract work - if a non VAT registered sub-contractor is used and a service element is applied do you add the whole amount together and charge VAT on the total amount, or is it possible to list the two amounts separately and only charge VAT on the service element?

I hope I am making sense.