Sole Trader Vs Ltd

[dave_m13]

You give them the rate you would be happy with, adjusting to take into account the expenses policy - don't include VAT

Still pretty new to contracting so excuse my stupid questions.

So I state a rate I'm happy with, I am sure that expenses will need to be included in the rate as well. When invoices are raised I add the VAT to the daily rate? What occurs when the end client is zero rated and abroad?

[tino]

Still pretty new to contracting so excuse my stupid questions.

So I state a rate I'm happy with, I am sure that expenses will need to be included in the rate as well. When invoices are raised I add the VAT to the daily rate? What occurs when the end client is zero rated and abroad?

Yes, confirm the policy with them first though and adjust the rate accordingly - be careful not to underestimate the cost of flights and accomodation.

I'm unsure with regards to your VAT question though, someone more knowledgable than me will be along shortly though

[dave_m13]

Thanks for the information guys, really helps.

Anyone know anything about the VAT if the end client is Zero rated and based abroad. I assume I still add the VAT to the rate for the agency as they will most probably be UK based and then let them deal with the zero rating.

Cheers tino, I usually drive there and have done this actual previous position for the past 2 years. So have a good idea what expenses will cost me from my books. I was direct with the client but due to the procedures they can no longer go sole source and its out to bidding. So I have had numerous agencies call me about the position.


Cheers
Dave

[ASB]

Thanks for the information guys, really helps.

Anyone know anything about the VAT if the end client is Zero rated and based abroad. I assume I still add the VAT to the rate for the agency as they will most probably be UK based and then let them deal with the zero rating.

Cheers tino, I usually drive there and have done this actual previous position for the past 2 years. So have a good idea what expenses will cost me from my books. I was direct with the client but due to the procedures they can no longer go sole source and its out to bidding. So I have had numerous agencies call me about the position.


Cheers
Dave

The agent is your customer. If you and they are in the UK you will [generally] add vat. The agent will of course reclaim it as input vat. What the agent has to do, which can be fairly complex cross border, is neither your problem nor your concern.

However, depending upon the exact pattern and a whole host of rules about where the services are supplied - of which your physical location makes no difference, and bizarrely in a number of cases where the services are actually supplied makes no difference (dependant upon the type of services) then it is possible [but unusual] that VAT is not chargeable even if you are billing a UK entity.

Look at the place of supply rules on HMRC website, they have a fairly comprehensive international section. Figure out how you think that applies to your circumstances. Then ask the helpline for an opinion (and it is only an opinion they will give). When you've done that ask the helpline again and see if you get the same answer.....

Of course this assumes you are VAT registered.

Also consider the impact of this in the flat rate vat scheme. IF your specific circumstances are such that the supplies are outside the scope of UK vat then you don't need to include it in your turnover for FRS. IF your circumstances are such that it is zero rated then you do need to include them (so YOU will end up about 12% - or whatever your FRS percentage is - out of pocket).

Do a search, it's been covered regularly but is somewhat contentious since it depends upon the exact circumstances and services being provided. No one size fits all answer.

[dave_m13]

This maybe have been put in a new Thread but its sort of connected.

I have the opportunity to return to Belgium but this time I will have to set up either Ltd or go through Umbrella/Management company. Reason Belgium company require all documents to be provided such as Company Certificate and Insurance etc.

If I can stay as UK resident for tax purposes would this be better than going through an Umbrella?

I have been lookign around the site on how to form a ltd company, any advise on the best and quickest way to do it? What insurance is required, I already have public and private as being sole trader.

Any decent umbrella's that deal with Belgium, I have looked a few, Itecs, etc. Anyone give recommendations?

Cheers

[ASB]

If I can stay as UK resident for tax purposes would this be better than going through an Umbrella?

Whether you are a UK resident or not for tax purposes is a matter of the individual facts of your case, not choice. You actions can of course influence it. The same is true for Belgian tax residency. It is perfectly possible for you to be tax resident in BOTH the UK and Belgium. How the income is then taxed is resolved by the double taxation agreement in force.