Originally posted by TheFaqqer
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
New to this, forgive me for the questions..
Collapse
X
-
-
Originally posted by richyheard of a few, i never been lucky enough to deal with these agencies yet myself mind you, Penta Consulting is the one I can remember off the top of my head. average seems to be upto 15%..... what commission rates are typical? thx. richyComment
-
Flat Rate Scheme
You can join the flat rate scheme as long as your company turnover is less than £150k per annum (excl VAT). The percentage you give back to HMRC depends on your business classification - this percentage can differ by sector. We are registered as 'Management Consulting' which attracts a 12.5%. However you get 1% off for your first year which is worth having.
FYI the flat rate calculation is (example):
Revenue for month £10,000 excl VAT
VAT charged to client (17.5%) £1,750
If registered at 13% flat rate, VAT due £1,300
VAT retained by business £450*
* This is supposed to cover all of your 'input VAT'. In your accounts this is shown as a VAT Adjustment ie additional revenue, added to your net revenue subject to tax.Comment
-
Flat rate scheme
Sorry, I've had 2 glasses of wine and just spotted an error in my example. The correct calculation is:
Revenue for month £10,000 excl VAT
VAT charged to client (17.5%) £1,750
If registered at 13% flat rate, VAT due £1,527.50 (13% of £11,750) **
VAT retained by business £222.50
** The 13% is calculated on the net revenue to client + 17.5% vatComment
-
Originally posted by achilleaSorry, I've had 2 glasses of wine and just spotted an error in my example. The correct calculation is:
Revenue for month £10,000 excl VAT
VAT charged to client (17.5%) £1,750
If registered at 13% flat rate, VAT due £1,527.50 (13% of £11,750) **
VAT retained by business £222.50
** The 13% is calculated on the net revenue to client + 17.5% vat
Not so great but it still beats having to tot up all expenditure and netting it off.Comment
-
The corporation tax is only paid on revenue less expenses so you in reality wouldn't be paying CT on the whole amount... the extra VAT is treated as additional revenue.Comment
-
Originally posted by achilleaThe corporation tax is only paid on revenue less expenses so you in reality wouldn't be paying CT on the whole amount... the extra VAT is treated as additional revenue.Cenedl heb iaith, cenedl heb galonComment
-
Comment
-
Originally posted by oraclesmithJust spend it on a new laptop.Cenedl heb iaith, cenedl heb galonComment
-
Originally posted by TheFaqqerMinimum 12.5% from what I've heard. Some will try to take 30% or more though.
Cheers
MattComment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment