is VAT included in IT contractor rates + company name

[fem]

Hi,
I'm new here obviously, about to move from a permanent role to contracting (IT in Banking), and now would like to ask a probably very very stupid question.
When you agree on a certain rate. Does it mean that already include the VAT you are about to charge your client (and hence practically you receive ~15% less), or VAT is not included and it is the client who will be paying you your rate + 20%?
ie when you agree on a rate - is it net in terms of VAT or gross normally?

Another question.. was it a bad idea (in terms of IR35) to create a company name like XXX Development Services Ltd? Just reading out some articles on here...

thank you!

[NotAllThere]

1) Rate is without VAT. The agent deducts the VAT they pay you from the VAT they charge the client, so for them, it's cost neutral.

e.g. your daily rate is £500
you invoice £500 + £100 VAT = £600

2) Why on earth would company name affect IR35?

[kaiser78]

1) Always make sure your contract states rate + vat, so it cannot then be open to interpretation.

2) It is the nature of your work that determines IR35 status and not the company name. So you will be okay, although it is good practise to not make the company name too specific, which is what you have done here however.

[fem]

1) Rate is without VAT. The agent deducts the VAT they pay you from the VAT they charge the client, so for them, it's cost neutral.

e.g. your daily rate is £500
you invoice £500 + £100 VAT = £600

2) Why on earth would company name affect IR35?

Thanks all for the first q reply.
For the 2nd: I've read about it on here: What triggers an IR35 investigation? :: Contractor UK

"A less obviously-named company than 'Joe Bloggs Computer Services Ltd' such as 'High Window Ltd' might attract less attention [from the Revenue]…

"Out of a 'High Window Ltd' and 'Joe Bloggs Computer Services Ltd' it's obvious which one a typical HMRC inspector, often with a suspicion and misunderstanding of freelancing, would look into."

[fem]

1) Always make sure your contract states rate + vat, so it cannot then be open to interpretation.

2) It is the nature of your work that determines IR35 status and not the company name. So you will be okay, although it is good practise to not make the company name too specific, which is what you have done here however.

Thanks, will make sure to check it.
Do you know how often IT contractors are inside IR35? Because naturally in IT we all do the very similar things. There shouldn't be much difference between us in terms of "how we do business", or the nature of our work.
So I don't know if I should prepare myself for incomes which are inside IR35 or outside...