Hi paul72,
Thank you and what you say makes sense but I'm still unsure about the Vat part of the billing. The auction houses all use the Vat Margin Scheme so I can't claim theirs (ie. their commission and various fees) as input Vat; and also do I issue my invoice with no Vat on it? Or, if I do put Vat on it I would effectively be having to pay the 20% element of the income out to HMRC as Output Vat....
Just to complicate the Vat issue further, the auction house told me they have charged THEIR customer 20% Vat rate on the net amount they pay me (the hammer price). I am effectively being paid income as a net of Vat figure.
Any thoughts?