New Contract - Charging travel & hotels back to agency\client

[Lance]

Thanks for answers - i had read you are meant to add VAT on top of the net price of hotel rather than on top of with vat. I'll check that out with my accountant

you must add VAT onto it whatever you charge. The question is whether you charge your customer NET +VAT, or GROSS + VAT. You'd prefer gross, but client's almost always refuse to pay VAT on VAT (oddly enough).

In fact you can charge any figure you like (+VAT) but clients usually want to see receipts so consider you taking the michael if you charge more.

[FrontEnder]

Also - and i know I will probably have to work out this when I start - but do you search for best fares or hotel deals or literally just pick the ones that suit location\times you want to travel? Also factor in first class travel on Virgin or would it be standard. Obviously without taking the michael too much and booking really top end hotels but dont want to stay in a travel lodge either.

I'm doing this and we have an agreed rate from the start. I can spend as much as I like on a hotel, but I can't re-bill them more than £80+ vat. So it's up to you if you want to be nice and scrimp and save, spend right up to your budget or even spend more if you'd like to.

Personally, I'm trying a few hotels at the top of the budget and will then use whatever I like best. What I'm also doing is booking it through hotels.com so that I can build up free nights (1 free night for every 10 you book, average of the 10 nights).

If you're doing this, be very careful not to pay for the hotel through the site - always select the option to pay at the hotel. This applies to a number of overseas based hotels sites, expedia are another. This is because they cannot (or will not) give you a VAT receipt. If you pay at the hotel, they will give you one.

[Lance]

If you're doing this, be very careful not to pay for the hotel through the site - always select the option to pay at the hotel. This applies to a number of overseas based hotels sites, expedia are another. This is because they cannot (or will not) give you a VAT receipt. If you pay at the hotel, they will give you one.

If you are on FRS then you don't want a VAT receipt anyway. Otherwise you'll likely have to knock that off the bill before you reclaim. Without a VAT receipt you can claim the while figure... General rule of thumb whilst on FRS is to avoid paying anywhere that charges VAT.

[FrontEnder]

If you are on FRS then you don't want a VAT receipt anyway. Otherwise you'll likely have to knock that off the bill before you reclaim. Without a VAT receipt you can claim the while figure... General rule of thumb whilst on FRS is to avoid paying anywhere that charges VAT.

If you're staying in hotels every week, you really need to be on standard VAT now.

EDIT: assuming typical contractor who would now be on the new "low costs" FRVAT band.

[WordIsBond]

One question though - as a contactor is my travel time chargeable/part of contracted hour? say 5 hours each week train travel to London.

I know all companies are different - just as a contractor are you expected to do that in own time.

What's your contract say? Does it address it?

If they need you to be up north AND need you to be in London, there would be a general expectation that you are being in two locations each week for their benefit, and so they should pay for your time as well as your travel in getting there. On the other hand, if there is work you could do for them whilst in transit, they could reasonably expect you to do that if they are paying for your time. And if you are going to kick back on the train and take a nap or play video games or look at porn or whatever, they can reasonably expect you are getting some personal time and not want to pay for it, or not want to pay for it all. If you can do something useful or enjoyable on the train, maybe you negotiate that they pay you for 2 hours rather than 5.

I WFH but if a client wants me to come in, I charge for travel time as well as travel expenses. As a general rule, if I'm crossing five or more time zones, jet lag is going to hammer me and I'll charge for a full day each direction. If I end up doing Singapore or Sydney, which could happen, I might charge two full days travel time, depending on the connections.

Berlin, Frankfurt, Rome? I figure I'll work on something for one of my clients on the plane, so I won't charge travel time for flying time. Driving to airport, taxi to client office? I charge for that.

[philo]

Hopefully we can come to some suitable arrangement about the travel - whether its get into London later than normal say 1030 on day of travel and work early the last day for an earler dart back to the station

Not looking for anything extra - rates good and happy with a few days in London each week. Just want to look fairly clued up before getting roped into anything some would say oh u dont have to do that.

Also......what happens with booking tickets for example u cant cancel for say the next month - and then your contract gets cancelled - can you claim for those or not? Or is that the risk?

[northernladuk]

Hopefully we can come to some suitable arrangement about the travel - whether its get into London later than normal say 1030 on day of travel and work early the last day for an earler dart back to the station

Not looking for anything extra - rates good and happy with a few days in London each week. Just want to look fairly clued up before getting roped into anything some would say oh u dont have to do that.

Also......what happens with booking tickets for example u cant cancel for say the next month - and then your contract gets cancelled - can you claim for those or not? Or is that the risk?

Hmm you want to go in late and finish early when you are only down there for one or two days. I'd be very careful with that. Personally I'd be putting full days in first and then when it's all settled start stretching it a little.

What do you mean claim? The business can buy them yes and if contract gets cancelled you just end up paying for something you didn't use.

[b r]

Not sure if others have said, but what you spend and what you charge don't have to be the same :-)

My last client would pay for 2nd class travel whereas I went 1st class - sometimes it cost me next to nothing extra, other times more.

But I still charged my company the full cost to me.

[tarbera]

"The agency said that travel expenses will be chargeable back to the client"

Lol, mine will as well if travelling away from main sites I work at, you may get a shock when client (project manager) says No way, you say my agent said you would, client says talk to your agent

Get it in your contract or increase your rate to cover it now.

[philo]

"The agency said that travel expenses will be chargeable back to the client"

Lol, mine will as well if travelling away from main sites I work at, you may get a shock when client (project manager) says No way, you say my agent said you would, client says talk to your agent

Get it in your contract or increase your rate to cover it now.

I've got this in my contract first draft - currently getting reviewed at QDOS:

Yes - paid for all expenses incurred in travelling and staying at other sites with ******** being the home location, for which expenses will not be covered.