VAT when quoting daily rate

[Sid]

I intend to go contracting soon and process my payroll through an umbrella company. I am not VAT registered. When job agents asks for my daily rate, should I mention the rate incl. VAT or excl. VAT?

[Bexter]

I intend to go contracting soon and process my payroll through an umbrella company. I am not VAT registered. When job agents asks for my daily rate, should I mention the rate incl. VAT or excl. VAT?

I may be wrong here, but pretty sure VAT only applies to people providing services through their limited companies.

If you are going via umbrella, you'll pay full PAYE on your day rate. So quote to the agent the rate you want coming into the umbrella company.

[SueEllen]

I intend to go contracting soon and process my payroll through an umbrella company. I am not VAT registered. When job agents asks for my daily rate, should I mention the rate incl. VAT or excl. VAT?

Your rate will be exclusive of VAT.

If the umbrella company wishes to apply VAT that's up for them to deal with not you. (Here's a relevant link from Parasol who post on here - http://www.parasolgroup.co.uk/contra...ors-vat-guide/ )

Even if you were going via your own limited company the rate should be quoted without VAT as it's customary for business to business services to be quoted exclusive of VAT.

[Wanderer]

Always talk about the rate excluding VAT.

If you form a LTD company and you become VAT registered then you add VAT to the rate.

If you work through a brolly then they will add VAT to the rate.

Either way the agency doesn't care because they are VAT registered too and they just claim it back on their VAT return.