Clarification about VAT exclusion in the contract rate

[sireesh]

WSS

I did register for the Flat Rate scheme and got my company's VAT number last Friday.

[Clare@InTouch]

Including the additional 1% discount for the first year (if this is still done). Every little and all that...

Yup it's still done. Just be careful as it applies to the first year of VAT registration, not a whole year from the date of flat rate registration.

[sireesh]

Yup it's still done. Just be careful as it applies to the first year of VAT registration, not a whole year from the date of flat rate registration.

I did opt for Flat Rate Scheme and got the VAT number last Friday.

[sireesh]

If you are VAT registered, then you need to add VAT to the invoice.



Fees (note the capitalisation) = agreed fees for the Consultancy Services + expenses or disbursements + VAT

So take your rate, add any expenses or disbursements authorised by the client, and add VAT. Bad wording to use Fees and fees in the same context, but that's what I'd invoice for, assuming you are VAT registered or have a VAT registration pending. If you don't then the whole thing is a moot point.

Thank you for your reply. As you mentioned the use of fees and Fees is very confusing.
The thing which made me worry was that the contract had my actual rate listed as

"Consultancy Fees" : £My_Daily_Rate

Also, in the contract there is no mention of what the agreed fees is as mentioned in the definition of Fees
I will raise the invoice with Daily rate + VAT and see how it goes.