Hiring self employed cleaners

Hello, My wife and I are looking in to starting a cleaning business where we will take bookings and send a self-employed cleaner to complete the work, my question is regarding the VAT element on the client's charge. I am making the assumption we will hit the VAT threshold quickly and will exceed the flat rate threshold and therefore will be looking at standard 20% rate. If, for example, we were to charge the client £18 and pay the cleaner £12, what is the VAT charged on, the full £18 or the £6 difference? And is our turnover considered the full £18 or the £6 difference? As we will be acting as the 'middleman', I am looking to be effectively collecting the cleaners fee from the client, in this example of £12/hr and charging an admin fee on top, so trying to work out where the VAT needs to be charged Thank you in advance for any help.

Hi,

The registration threshold comprises your taxable turnover over a rolling 12 month period.

If you have a cleaning business and you subcontract your work out, then they will be making a supply to you of £12. You will then be making a supply of £18 to your customer and so £18 is your taxable turnover.

You can find further guidance here:

Who should register for VAT (VAT Notice 700/1)

Thank you.