rates

[chicane]

Will always be £500 + VAT (if VAT is applicable). You'll never see a VAT inclusive rate, because VAT belongs to the VAT man, not you.

[BillHicksRIP]

So which is the correct answer? If you see a gig on Jobserve for Barclays, Halifax or another bank which is advertising £500 p.d., are they expecting that to be plus VAT on top or are there going to be problems later when you get the contract to sign?

[oraclesmith]

I am considering taking a contract/consulting role and will be negotiating rate/terms directly with the client. What's the standard practice for quoting day rates on a financial services contract - are these usually inclusive or exclusive of VAT?
Thanks.

It goes without saying (I hope) that to charge VAT you have to be VAT registered !

[Ardesco]

I am sure that they will have various different parts of the company all registered as individual companies in the group though. I'm sure that employment of contractors will be handled by one of the companies in the group that can be VAT registered.

Banks know how to make money, and don't often miss a trick. I will not belive that none of them have found a way around reclaiming VAT for a large portion of thier business activities that do not involve exempt supplies.

[tim123]

We are talking about them claiming VAT back from the money charged by people supplying them. I'm sure every bank is VAT registered and claims back everything they legally can.

Banks are a complicated issue. Some of the minor services that they do are Vatable, but their core services are excempt.

A company which only makes excempt supplies may not register for VAT.

tim

[malvolio]

We are talking about them claiming VAT back from the money charged by people supplying them. I'm sure every bank is VAT registered and claims back everything they legally can.

I did hear of someone discovering his bank/finance house owned a long-standing but dormant company that was VAT registered. He promptly woke it up and made it into the outsource provider of his employers' IT services and infrastructure. Saved several million a year.

I'd be very surprised if he was the only one to have spotted that option, but banks cannot reclaim VAT on their core businesses, which is why he had to use a pre-existing company and not just set up a new one.

[Sockpuppet]

I'm sure there are some ghost comapnies and internal chargin taking place to hide from the VAT man.

[Ardesco]

Those selling mainly excempt items can't. This is Banks and Insurance Companies.

Neither can Local Authorities.

HTH

tim

We are talking about them claiming VAT back from the money charged by people supplying them. I'm sure every bank is VAT registered and claims back everything they legally can.

[malvolio]

Unless they are banks or HMG...

The correct answer is to quote exclusive of VAT as eveyone says, but make sure you add "Plus VAT" so they are clear about it. It won't affect the outcome to you but might make an impact on their budgetting if they can't reclaim VAT.

[tim123]

To put it in perspective, all businesses claim VAT back so they are not actually paying VAT.

Those selling mainly excempt items can't. This is Banks and Insurance Companies.

Neither can Local Authorities.

HTH

tim

[Ardesco]

To put it in perspective, all businesses claim VAT back so they are not actually paying VAT.

[bangface]

I am considering taking a contract/consulting role and will be negotiating rate/terms directly with the client. What's the standard practice for quoting day rates on a financial services contract - are these usually inclusive or exclusive of VAT?
Thanks.

I would say exclusive

[Ardesco]

exclusive

[mocha]

I am considering taking a contract/consulting role and will be negotiating rate/terms directly with the client. What's the standard practice for quoting day rates on a financial services contract - are these usually inclusive or exclusive of VAT?
Thanks.