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Adding VAT to my quotes
Firstly, apologies if this has already been asked a hundred times before!
I've just started out as a freelancer, and have had my first quote request for stationery design and print. Up until now I've been quoting for flyers and other stuff that is zero-rated for VAT, but I realise that letterheads and business cards are standard rated. I've received quotes from printers to print the job from the artwork I supply and their prices are excluding VAT. Now, when I quote the client, do I add in the VAT I'm being charged on the print, along with my design charge, to give the client a total figure?
My worry is that I am not VAT registered and therefore not allowed to charge VAT. But surely, I'm just covering the cost of the VAT I'm being charged, and not actually charging VAT to my client...?
I hope that makes sense - VAT is proving to be a bit of headache!
I've just started out as a freelancer, and have had my first quote request for stationery design and print. Up until now I've been quoting for flyers and other stuff that is zero-rated for VAT, but I realise that letterheads and business cards are standard rated. I've received quotes from printers to print the job from the artwork I supply and their prices are excluding VAT. Now, when I quote the client, do I add in the VAT I'm being charged on the print, along with my design charge, to give the client a total figure?
My worry is that I am not VAT registered and therefore not allowed to charge VAT. But surely, I'm just covering the cost of the VAT I'm being charged, and not actually charging VAT to my client...?
I hope that makes sense - VAT is proving to be a bit of headache!
- Contact in PM
marklyon
Messages count : 4Likes count : 0Registration : 11 March 2008VAT is a headache, and I'm not VAT registered but have worked very closely with persons who are. As your not VAT registered I'm sure (I'm no accountant) That you can't add VAT to your invoices and you can't claim VAT back.
Taking all the above into account, I think your about right. If I was in the same position I would add everything together:
PRINTERS BILL £100
PRINTERS BILL WITH VAT £117.50
YOUR BILL £50
TOTAL £167.50 - Contact in PM
MattMorris
Messages count : 3Likes count : 0Registration : 12 March 2008Thanks for your help. As I see it I'm, not actually charging VAT to the client, I'm simply treating the VAT I've been charged as an expense, and adding into my quote. - Contact in PM
marklyon
Messages count : 4Likes count : 0Registration : 11 March 2008Thats the way I do it! - Contact in PM
playboy_bunnie
Messages count : 33Likes count : 0Registration : 23 December 2007Well that surely can't be right, its like me charging an extra 40% percent or whatever, because I want to cover the 'expense' of paying tax and NI at the end of the year!!
You cant surely class it as an expense; its Value Added Tax.
I dont think it would go down with the Revenue too well... - Contact in PM
MickeyFinn
Messages count : 120Likes count : 0Registration : 30 October 2006
You mean you don't add 40% extra to what you work a job out at to cover these costs? 😃playboy_bunnie, post: 5395 a écrit : Well that surely can't be right, its like me charging an extra 40% percent or whatever, because I want to cover the 'expense' of paying tax and NI at the end of the year!!
You cant surely class it as an expense; its Value Added Tax.
I dont think it would go down with the Revenue too well...
It is right though, the £117.50 is what the print job cost and that is what the client pays Matt. Otherwise he would be £17.50 down on the job. - Contact in PM
playboy_bunnie
Messages count : 33Likes count : 0Registration : 23 December 2007oh yea I can understand charging the client the cost, because he would be making losses left right and centre.
I just thought he meant he was declaring to the Rev all the VAT he pays... as expenses :confused2 - Contact in PM
Ardesco
Messages count : 18Likes count : 0Registration : 8 January 2007
DO NOT CHARGE VAT IF YOU ARE NOT VAT REGISTERED!MattMorris, post: 5383 a écrit : Firstly, apologies if this has already been asked a hundred times before!
I've just started out as a freelancer, and have had my first quote request for stationery design and print. Up until now I've been quoting for flyers and other stuff that is zero-rated for VAT, but I realise that letterheads and business cards are standard rated. I've received quotes from printers to print the job from the artwork I supply and their prices are excluding VAT. Now, when I quote the client, do I add in the VAT I'm being charged on the print, along with my design charge, to give the client a total figure?
My worry is that I am not VAT registered and therefore not allowed to charge VAT. But surely, I'm just covering the cost of the VAT I'm being charged, and not actually charging VAT to my client...?
I hope that makes sense - VAT is proving to be a bit of headache!
This will be seen as fraud and the VAT man will find you and lock you up in jail. Don't mess with the VAT man, he knows his stuff and will come down on you like a ton of bricks if you don't follow the rules.
This doesn't mean that you can't pass your costs on to the customer, if your print costs are £100 + vat you can quite happily charge your customer £117.50 for printing (You could charge them £200 for printing if you wanted to), just don't put anything to do with VAT on your invoice. - Contact in PM
MattMorris
Messages count : 3Likes count : 0Registration : 12 March 2008Thanks for your comments guys, that's helped me a lot. I'm just trying to make sure I'm not out of pocket when I have to pay the VAT on print!