PeoplePerHoure Charging VAT on payments

[snake]

I do freelance work on peopleperhour.com, and when they pay you they charge you VAT.
I am struggling to see how this can be legal.

You charge VAT on products and services you sell to others....
How can you legally charge VAT on money you pay to others for services they have provided?

[atticus]

Is the VAT charged on their cut?

Try this example - you agree a fee of £100, but pph cut is 10% plus VAT.

PPH pays you £88. This is £100, less charge to you of £10 + VAT.

Is that what is happening?