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Hourly rate + VAT?
Rachel_Norfolk
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Rachel_Norfolk
Messages count : 2
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14 June 2007
Hi
Just started freelancing as a designer and have agreed with my first client a fixed fee for a job. (If it went on a bit we agreed that we'd review it.)
Now I realise I've no idea if this in ex or inc VAT. I'm not VAT registered but it still comes down to if the client's expecting to pay the agreed amount plus or minus VAT as I'm sure the client will be registered. What is the norm to presume please?
Just started freelancing as a designer and have agreed with my first client a fixed fee for a job. (If it went on a bit we agreed that we'd review it.)
Now I realise I've no idea if this in ex or inc VAT. I'm not VAT registered but it still comes down to if the client's expecting to pay the agreed amount plus or minus VAT as I'm sure the client will be registered. What is the norm to presume please?
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dmd
Messages count : 22Likes count : 0Registration : 4 January 2007
I'm pretty sure that if you are not VAT registered then you cannot charge VAT (as you'll need to supply a VAT number for the client's records). Usually you'd add VAT to the final price on invoice so that price agreed should be the price before VAT.Rachel_Norfolk, post: 1369 a écrit : Hi
Just started freelancing as a designer and have agreed with my first client a fixed fee for a job. (If it went on a bit we agreed that we'd review it.)
Now I realise I've no idea if this in ex or inc VAT. I'm not VAT registered but it still comes down to if the client's expecting to pay the agreed amount plus or minus VAT as I'm sure the client will be registered. What is the norm to presume please?
Hopefully someone else can give advice on VAT i.e. whether it is preferable to be registered VAT for the client's benefit. Personally I can't imagine it makes any difference but I may be wrong! -
Rachel_Norfolk
Messages count : 2Likes count : 0Registration : 14 June 2007Thanks, it's good to have another opinion when you're out on a limb! -
stovey
Messages count : 12Likes count : 0Registration : 16 June 2007Hi I'm very new here - but as a designer I have been VAT reg for the last 3 years and cannot see why anyone would'nt be - unless you are mainly working for the public (ie people that are not generally VAT reg either).
Most of my clients are contractors and therefore all can claim the VAT that I charge.
It also means I can get the VAT back on my diesel and things like computers + certain print jobs that I get produced on my clients behalf... but there are a few things that you cannot claim VAT back for ie: certain types of print jobs.
Also you cannot charge a client VAT if your not registered.
Another reason that someone I work with mentioned - it can look a bit more professional if you are VAT reg. -
hueylepants
Messages count : 5Likes count : 0Registration : 1 June 2007Hi Stovey
Just curious as im new here too. What print jobs can & can't you claim
VAT back on, how does it work? Im not VAT registered, but am considering
it so i can claim VAT back on the print i buy for clients!
Cheers -
stovey
Messages count : 12Likes count : 0Registration : 16 June 2007
To can be a bit of a mine field.hueylepants, post: 1385 a écrit : Hi Stovey
Just curious as im new here too. What print jobs can & can't you claim
VAT back on, how does it work? Im not VAT registered, but am considering
it so i can claim VAT back on the print i buy for clients!
Cheers
From jobs in the past - I have been told (and might stand corrected):
If you are going to produce a leaflet with a section designed to be detached and completed, make sure that the section to be detached is less than 25% and you won’t be charged VAT.
If it can be classed as a leaflet - VAT should not be charged on the printing.
But there is a line between what is classed as a leaflet & what is classed as a 'pricelist'.
That probably isnt very helpfull but there are stacks of pages out there with lots more info on!