Are rates normally inclusive of VAT or exclusive of VAT?

[odm]

Just wondered if I might be getting sold short on my first contract, which is ~£200/day. I'm under the assumption that it's inclusive of VAT, so I'll need to deduct VAT from the rate when doing my accounts. An accountant who's calculated my potential earnings assumed it was excluding VAT, and therefore calculated my yearly income a bit higher than I had forecast. I was informed that most contracts are excl. VAT, so the day rate is the rate before VAT is added.

Can anyone confirm the above or add more colour to the picture with their experience? Many thanks!

[downsouth]

are you VAT registered?

[VectraMan]

Almost certainly exclusive of VAT, as business to business deals usually are.

[odm]

are you VAT registered?

No, not yet. Howcomes?

[odm]

Almost certainly exclusive of VAT, as business to business deals usually are.

Good to know - thanks for the insight.

[SueEllen]

No, not yet. Howcomes?

I noticed you are asking a lot of questions some of them have been answered before several times including by the resident accountants (who tend not to post on weekends)

To help you get answers I suggest you read:
1. Under "CUK Navigation" on the right click on "First Timers"
2. Go to Home | PCG and click on "resources" then "freelancer help and advice" then "considering going freelancing" and then download the ebook on the guide to freelancing.

Finally when you have a question put a search term in the search box at the top. You are then likely to get thread with a reply which includes a post from an accountant.

[SueEllen]

No, not yet. Howcomes?

You need to register yourself - HM Revenue & Customs: How and when to register for VAT

At the same time you should register yourself for the flat rate scheme. This is a different form. (Search for "flat rate scheme" on the forum to find the advantages.)

You cannot charge VAT until you are registered. This could take a couple of months.

[Optimus Prime]

You cannot charge VAT until you are registered. This could take a couple of months.

I registered recently. Got the VAT registration certificate in 2 weeks.

[SueEllen]

I registered recently. Got the VAT registration certificate in 2 weeks.

You always give people the worse case scenario so when they get things sooner they are happy.

It's called managing expectations.

[Optimus Prime]

You always give people the worse case scenario so when they get things sooner they are happy.

It's called managing expectations.

Ok, wise one.