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Previously on "Contract rates - VAT inclusive or exclusive?"

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  • Shirdi
    replied
    Originally posted by malvolio View Post
    OK, no worries. To do it properly go to Contractor UK Calculators and they have all the calculators to compare one to another fairly accurately (it's not a precise science!)

    Thanks Malvolio. You are helpful.
    Last edited by administrator; 7 March 2011, 15:50.

    Leave a comment:


  • malvolio
    replied
    Originally posted by Shirdi View Post
    Thanks for your reply.

    It is VERY BASIC as you said.

    but there is nothing to worry. Because I am Permie.

    I have just wanted to compare my Permie TAKE HOME with Contract rates mentioned in the job ads which I come across in jobserve.Some of the contract rates are very low. So I was wondering how the rates are calculated.

    Thanks for your time and reply anyway malvolio.
    OK, no worries. To do it properly go to Contractor UK Calculators and they have all the calculators to compare one to another fairly accurately (it's not a precise science!)
    Last edited by administrator; 7 March 2011, 15:49.

    Leave a comment:


  • DaveB
    replied
    Originally posted by Shirdi View Post
    Thanks for your reply.

    It is VERY BASIC as you said.

    but there is nothing to worry. Because I am Permie.

    I have just wanted to compare my Permie TAKE HOME with Contract rates mentioned in the job ads which I come across in jobserve.Some of the contract rates are very low. So I was wondering how the rates are calculated.

    Thanks for your time and reply anyway malvolio.
    It says something when permies are looking at contract rates to make themselves feel better about their own pay

    Leave a comment:


  • Shirdi
    replied
    Originally posted by malvolio View Post
    Bit worrying that people don't know these basics already...

    The VAT threshold is currently £67k gross turnover pa. FRS rates are variable depending on your SIC code but 11.5% for most IT contract=ors (10.5% discount in the first year) at the moment but these will change again at the end of the year. You can't go FRS if you gross over £150k and if you have a lot of output VAT you will actually lose out.

    HTH. Like I said - basics.

    Thanks for your reply.

    It is VERY BASIC as you said.

    but there is nothing to worry. Because I am Permie.

    I have just wanted to compare my Permie TAKE HOME with Contract rates mentioned in the job ads which I come across in jobserve.Some of the contract rates are very low. So I was wondering how the rates are calculated.

    Thanks for your time and reply anyway malvolio.

    Leave a comment:


  • Shirdi
    replied
    Originally posted by JoJoGabor View Post
    Exclusive - are you registered for VAT? Say your rate is £100 per day, if you charge VAT on top you get £115 per day, and then only pay £13(ish) if you are on the Flat rate scheme so it can work in your favour. It makes no difference to the agency as they claim the VAT back anyway

    If your annual revenue is over something like £55k you must register for VAT
    Thanks for the reply JoJoGabor.

    Leave a comment:


  • malvolio
    replied
    Bit worrying that people don't know these basics already...

    The VAT threshold is currently £67k gross turnover pa. FRS rates are variable depending on your SIC code but 11.5% for most IT contract=ors (10.5% discount in the first year) at the moment but these will change again at the end of the year. You can't go FRS if you gross over £150k and if you have a lot of output VAT you will actually lose out.

    HTH. Like I said - basics.

    Leave a comment:


  • JoJoGabor
    replied
    Exclusive - are you registered for VAT? Say your rate is £100 per day, if you charge VAT on top you get £115 per day, and then only pay £13(ish) if you are on the Flat rate scheme so it can work in your favour. It makes no difference to the agency as they claim the VAT back anyway

    If your annual revenue is over something like £55k you must register for VAT

    Leave a comment:


  • Shirdi
    started a topic Contract rates - VAT inclusive or exclusive?

    Contract rates - VAT inclusive or exclusive?

    I wish to know whether the rates mentioned for the contract roles are inclusive of VAT or VAT exclusive?


    TIA

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