Flat rate VAT, double taxation and expenses mayhem

[sblog]

Just a thought....

Any chance of negotiating a rate which includes expenses?

No one wants to be out of pocket, so if you're normal rate is £450 a day, then try and state that this excludes expenses and you could negotiate a rate of £500 that includes all expenses.

Some days you win some you lose, but it could average out - depending on how much you stay away....or choose cheaper hotels

They won't feel as they're being charged extra / double tax etc and you won't feel as though your losing out.....

Just a thought for my 1st post on here

For those more experienced - flame away....

[jamesbrown]

...because it's not my choice.

Actually, it is. You just didn't realise it at the time, which is different. You can charge the client anything that's agreed in advance, like I said. At this point, however, the truth of your situation is inescapable. To put this in perspective, though, you're still probably much better off on the FRS and, in terms of what the "average" contractor might do, many contractors don't (or can't) bill for these costs at all, i.e. it's factored into their rate.

[scooterscot]

Experiencing a similar situation at the minute with an intermediary insisting I charge VAT on expenses the client agreed to repay.

Who am I to argue? I did not sell 'staying at a hotel' but then I don't have the puff in me to educate an agent either. With any luck the client will fire them for stupidly.

[ndoody]

Actually, it is. You just didn't realise it at the time, which is different. You can charge the client anything that's agreed in advance, like I said. At this point, however, the truth of your situation is inescapable. To put this in perspective, though, you're still probably much better off on the FRS and, in terms of what the "average" contractor might do, many contractors don't (or can't) bill for these costs at all, i.e. it's factored into their rate.

It would certainly be much easier on a flat daily rate to include expenses.

Though this wouldn't be feasible, given the varying level of expenses due to the nature of the work and diversity of the customers. And you certainly wouldn't agree to work without recompense for expenses, as they would quickly outstrip the daily rate alone.

Guess I walked into a little blind, as it's never been a problem since...well 2007. It's not something I had even contemplated before now.

[aoxomoxoa]

Double taxation certainly isn't my terminology, that's what the company used towards me. I guess that's why I couldn't find anything when searching for "double taxation", "double tax" / etc using forum search to try and find threads where this was already discussed.

Well look on the bright side - from now on anyone who searches for "double taxation" will find something

[SueEllen]

If your contract is predicted to last a few quarters and you think you will lose some money, you can resign from the flat rate scheme and go on normal VAT accounting.

Then exactly 12 months later you can rejoin the flat rate scheme again.

[GlenW]

I've only needed to claim expenses a couple of times at my current gig, but both times my agent checked that I had added VAT on top. They are not flat rate registered so will just claim it back.