Advertised hourly rates and VAT

[wct275]

Probably a silly but.....
I've been a contractor for many years but never in the UK despite being British.
If a company offers a rate in writing as £// Ltd by quoting Ltd after the rate does this imply the rate is inclusive or exclusive of any VAT my Ltd company would need to invoice.
Many Thanks

[socialworker]

In my experience it has been exclusive of the VAt your company would invoice for. Not everyone is VAT registered.

[tractor]

...

In my experience it has been exclusive of the VAt your company would invoice for. Not everyone is VAT registered.

But like everything in business, you should clarify it in writing at the earliest possible stage. Many agents cannot tie their shoelaces let alone understand VAT.

[BlasterBates]

The rate quoted is exclusive of VAT. I´ve never experienced any agent including VAT as part of the rate, which in my view would be unacceptable.

[VectraMan]

Yes, business to business deals will be exclusive of VAT unless it says otherwise. But it's a good idea to be clear about it, and if you ever quote your rate to someone I'd always put x + VAT just to make sure there's no misunderstanding.

[Brussels Slumdog]

VAT - Input and Output

VAT has a cash flow benefit to you and not a cost

You invoice the agency with the VAT (Output tax) and you pay the VAT to the tax authorities

The Agency or end client pays you the VAT (Input tax) and claims the VAT back from the tax authorities

VAT is only a cost to the end consumer who cannot claim back the VAT

From the date Tesco receive the VAT from you to the date they pay the VAT invoice is a rather large additional cash flow

From the date you receive the VAT from the agency or client to the date you pay your VAT invoice you have an small cash low

[kal]

VAT has a cash flow benefit to you and not a cost

You invoice the agency with the VAT (Output tax) and you pay the VAT to the tax authorities

The Agency or end client pays you the VAT (Input tax) and claims the VAT back from the tax authorities

VAT is only a cost to the end consumer who cannot claim back the VAT

From the date Tesco receive the VAT from you to the date they pay the VAT invoice is a rather large additional cash flow

From the date you receive the VAT from the agency or client to the date you pay your VAT invoice you have an small cash low

Of course being on the Flat Rate Scheme may also benefit you and is in effect money for doing nothing

[BolshieBastard]

Probably a silly but.....
I've been a contractor for many years but never in the UK despite being British.
If a company offers a rate in writing as £// Ltd by quoting Ltd after the rate does this imply the rate is inclusive or exclusive of any VAT my Ltd company would need to invoice.
Many Thanks

I always confirm my rate as £xxx excluding VAT, then, there's no confusion.

Strictly speaking and to the law, if a company is VAT registered (as virtually all clients are), they should state their price as excluding VAT or including VAT so long as they are consistent.

Where anyone quotes a rate, I'd recommend you always clarify it is excluding VAT. There are, after all, some unscrupulous people out there.