Agency cut

[tim123]

Normally I'm in favour of ingenious ways to charge more money, but the % admin charge is a bit too wacky for me. Even though KPMG used to do it back in the 90s when their customers had more money than sense. A one-off setup fee, just maybe, or a carefully structured expenses ratecard.

KPMG's customer still has more money than sense, he's called HMG.

tim

[thunderlizard]

Normally I'm in favour of ingenious ways to charge more money, but the % admin charge is a bit too wacky for me. Even though KPMG used to do it back in the 90s when their customers had more money than sense. A one-off setup fee, just maybe, or a carefully structured expenses ratecard.

[WindyAnna]

The client I'm working at in insists on "rate transparency" this means that any agencies, or any consultancies using associates have to invoice contractor payment plus agency margin as separate invoices lines.

[chef]

agreed,

bill the client something like as follows:

5 days consultancy services @ £xxx per day - £xxx
Total £x,xxx
Vat (17.5%) £x,xxx
Amount Due £x,xxx

Payable within 30 days

Please make all payments to:
Account name: xxxx
Sort Code: xx-xx-xx
Account Number: xxxxxxxx

Simple as that

[ratewhore]

fair enough... I will go for £650 all-in in that case.

+ VAT of course...

[dude69]

They don't see the agency cut, they just see a total fee. Adding on a "limited company admin fee" is nuts, IMHO

tim

fair enough... I will go for £650 all-in in that case.

[Ardesco]

They don't see the agency cut, they just see a total fee. Adding on a "limited company admin fee" is nuts, IMHO

tim

Just invoice the client in the same way you would invoice an agency. Print out an invoice on company headed paper showing how much money you want and a VAT breakdown. Simple

[tim123]

I am going, sans agent (never needed one), to my new contract, and am thinking about dressing up my rate a bit.

How do agencies bill their client?

If a contractor gets £500, the agent I guess around £575, then how is that itemise and billed? Is it just £575 flat?

I am still not sure about my rate, thinking £600-£650, but was thinking that something like £600 + 10% 'administration charge' for my Ltd. might be a slightly easier sell than £650 flat.

But that depends on whether the client sees a £650 + agency cut as £730, or as £650.

Any thoughts?

They don't see the agency cut, they just see a total fee. Adding on a "limited company admin fee" is nuts, IMHO

tim

[NotAllThere]

...
How do agencies bill their client?

If a contractor gets £500, the agent I guess around £575, then how is that itemise and billed? Is it just £575 flat?
...

£575 flat. I've never seen it itemised the way you suggest.

[BrilloPad]

I am going, sans agent (never needed one), to my new contract, and am thinking about dressing up my rate a bit.

How do agencies bill their client?

If a contractor gets £500, the agent I guess around £575, then how is that itemise and billed? Is it just £575 flat?

I am still not sure about my rate, thinking £600-£650, but was thinking that something like £600 + 10% 'administration charge' for my Ltd. might be a slightly easier sell than £650 flat.

But that depends on whether the client sees a £650 + agency cut as £730, or as £650.

Any thoughts?

I guess if they look at you as am employee they might see it as £650 + £80 NI. HMRC might see it like that too...

[dude69]

I am going, sans agent (never needed one), to my new contract, and am thinking about dressing up my rate a bit.

How do agencies bill their client?

If a contractor gets £500, the agent I guess around £575, then how is that itemise and billed? Is it just £575 flat?

I am still not sure about my rate, thinking £600-£650, but was thinking that something like £600 + 10% 'administration charge' for my Ltd. might be a slightly easier sell than £650 flat.

But that depends on whether the client sees a £650 + agency cut as £730, or as £650.

Any thoughts?