Ltd company day rate for mortgage application

[TheCyclingProgrammer]

Question was not about what is my day rate........question if you read it, was about if you can or cannot add VAT to give a correllation to the gross income.......

If by gross income you mean turnover, then you should apply your FRS percentage to your day rate + VAT to get the correct figure.

E.g. If your day rate is £500 and your FRS percentage is 14.5% then I suppose you could consider your gross daily rate to be (500 * 1.2 * 0.855) £513.

But when you consider that he FRS surplus is supposed to cover any input VAT you incur and cannot reclaim, including it seems a little silly.

Just use your net day rate.

[northernladuk]

Question was not about what is my day rate........question if you read it, was about if you can or cannot add VAT to give a correllation to the gross income.......

Thanks for your hostile approach though and thanks to others who have been constructive with responses.

I don't see any hostility. Hostility would be something like 'What moron thinks the daily gross rate includes VAT ' but I didn't say that.

I asked the other questions just as an extra. If you think VAT is part of gross income then it is totally conceivable you may have misunderstood something else. Wouldn't be the first time a contractor has put his gross rate down as his net income on a mortgage application. We get a lot of people on here that can't see the difference between rate their company charges and what their personal income is.

Poster above says you are silly so could you berate him as well please?