Take home pay from £300/day?

[malvolio]

The company has finally approved my contract, after re-evaluating the cost, because they had underestimated the cost of a contractor. So they are happy with £300/day.

My accountant suggested to register for VAT as well, but that would mean I would have to charge them £300 + VAT. They had trouble getting the budget approved for the daily rate only. I am thinking it could get them to back down if I ask them to pay VAT on top of the normal daily rate.

What do you guys think?

VAT is reclaimable so is not part of their costs, assuming they are VAT registered themselves.

[Lance]

Take home pay from £300/day?

The company has finally approved my contract, after re-evaluating the cost, because they had underestimated the cost of a contractor. So they are happy with £300/day.

My accountant suggested to register for VAT as well, but that would mean I would have to charge them £300 + VAT. They had trouble getting the budget approved for the daily rate only. I am thinking it could get them to back down if I ask them to pay VAT on top of the normal daily rate.

What do you guys think?

Wow. They are either daft, cheapskates, or taking the mickey. The beauty of a 300/day contractor is they don't have all the permie overheads. If they struggle to get that then I'd be really, really cautious as they don't sound like they'll be able to retain you as soon as one of their customers flunks an invoice.
What you mustn't forget is that contracting is a 2-way thing. The client gets a load of bonus as well as they don't need to insure you, pay your pension, pay for for sick or holidays.

Sounds like they just cannot afford someone but you are just about affordable as you're cheap and easy to bin.

BEWARE.

[lucyclarityumbrella]

Or you could save all the confusion as it is your first time and go brolly until you settle into the contracting world properly, especially as it is only 4-6 months.

And yes before you all jump on me, I know it isn't going to do the rate any good but at least it will give some time to do some proper research on the LTD side of things. Just a thought