Vat on rate

[VillageContractor]

Hi,

I'm sure I saw a post mentioning that someone wasn't sure whether their rate included/excluded VAT. I can't find it so if someone could either help out of the kindness of their hearts or just to show me up.

Just got my first contract and wanted to check whether I need to clarify that with the agent.

Thanks

VC

[northernladuk]

A search will find it for you then. Check the FAQ page on the best method.

[VillageContractor]

Vat on rate

Thanks I found the post.

When you all talk about rates or use the calculators, do you use rate including VAT?

[TheFaQQer]

Thanks I found the post.

When you all talk about rates or use the calculators, do you use rate including VAT?

It's a business to business transaction between two VAT registered entities - so I quote ex-VAT.

[ujjain]

Excluding, you don't get to take home the VAT. You only get to keep a part if you use the VAT flat rate scheme.

[northernladuk]

Thanks I found the post.

When you all talk about rates or use the calculators, do you use rate including VAT?

You didn't read it then?

[mudskipper]

You're rate is normally excluding VAT. FAOD, if you are quoting rate, say x +VAT. One or two have come unstuck because they haven't done this.

For the calculators, it's exc VAT.

Remember, you only add VAT once you're VAT registered.

[PerfectStorm]

Although important to remember that the food calculators (like Nixon Williams') ask for the rate excluding VAT but will factor the profit from VAT (flat rate) into your take-home figure. They also factor in the first year VAT discount if you look at the details.

[TheFaQQer]

You're rate is normally excluding VAT. FAOD, if you are quoting rate, say x +VAT. One or two have come unstuck because they haven't done this.

For the calculators, it's exc VAT.

Remember, you only add VAT once you're VAT registered.

I had to read your acronym very carefully there

I was banned for that, you know.

[NickNick]

You're rate is normally excluding VAT. FAOD, if you are quoting rate, say x +VAT. One or two have come unstuck because they haven't done this.

For the calculators, it's exc VAT.

Remember, you only add VAT once you're VAT registered.

Once had an agency try and get money out of me over this.

We'd agreed a rate for my services ex VAT, which was then added back in come invoice time. Unfortuantely for them, they had agreed a rate with the end client that was inc VAT and so I was actually losing them money. They then asked for three months worth of VAT back which got them the reply you would expect.
Outcome was that they sacked the person involved their end, took the hit for three months then corrected their contract with the client.