Hi all,

As some of you will know I've just accepted a residency in a hotel, last week we agreed on prices but today I've had a call from the hotel asking if I was VAT registered which I responded to with no but I do pay tax on what I earn.
Anyway to cut a long story short, they want to reduce the amount they are paying me per gig by £15 because their accounts department say because I'm not VAT registered they will have to pay the VAT on what they charge the customer.

This doesn't sound quite right to me, if they are paying VAT on what they charge their customer and giving me the net amount, does this mean I do not have to pay tax on it?

I'm a bit confused by it and am just wondering if they are trying to reduce the amount they are paying me.

Any help is appreciated.