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Self Employment
#11
thats what I tried to say my eloquent friend. Smile you just managed to do it in a coherent way !

Turnover can be large once you hire a few weeks of JCB, a months hire of this, a months hire of that etc... and thats what counts.
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#12
pass the hire costs directly to the client.

I often charge just after fieldwork and before the report is produced. I have wondered whether if you had a large cheque that appeared to put you into the threshold area whether it would be legitimate to slip out the time taken for post excavation in the invoice? My thinking is that you do a weeks field work earn 70000 but it takes you a year (and a day) to produce the report could you claim to the vat man that the payment rate was never reached? (obviously I would not take on any other work in that period)
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#13
My advice is ignore any advice given by anybody who is not self employed. VAT is easy and worth registering for even if you are below the threshold.

It is unlcear if this is a one off and you will go back into a job or if this is the start of self employment. Tax and VAT can be sorted out later - concentrate on getting the job done well but look at the Revenue websites.

PI is a good idea but this will cost you ?700 so it will be a big lump out of your first contract. As for claiming expenses it is all depends on the quote. You cannot charge a fixed price and then claim expenses. If you are on a day rate this will be regarded as including expenses unless you have detailed that the expenses are not in the day rate and given an estimate. If you are on a time and materials basis then you can claim reasonable expenses but overall your fee must be fair and reasonable.

Peter
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#14
kevin wooldridge Wrote:I think I undertsand what you were trying to say David.

I was going to post in reply to EC Gardner that the VAT is based on turnover and not earnings. So for example it doesn't need many weeks of machine hire (even if you are fully recompensed by the project sponsor) to push a self-employed person into VAT-land.....which to be honest is a place you would rather not be!!

Thanks - I don't reach remotely near that level of turnover so don't tend to worry about it. Sorry for giving duff information:I
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#15
Smile no such thing as duff... only that which needs clarification Wink
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#16
Quote:
VAT is easy and worth registering for even if you are below the threshold.

why is it easy getting involved with vat, -don’t you have to do your books every quarter

and what are the benefits if you are below the threshold. Surely charging 20% on top is a competitive negative in a lot of cases. Even in the cases where the client is vat registered quite often they are on a flat rate of vat based on turnover.

Is there a flat rate that you can negotiate?
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#17
You need training in VAT. WE have a VAT registration and its not that bad. It is all there anyway and actually makes you more competitive.
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#18
Unitof1 Wrote:Even in the cases where the client is vat registered quite often they are on a flat rate of vat based on turnover.

Is there a flat rate that you can negotiate?

Flat rates have different percentages depending on your classification of business - ring up an ask the VAT office if you are unsure as it can be quite hard to find on the web site. All of the people I have dealt with are very helpful and WANT you to be comfortable with dealing with your own VAT. Accountants like to make it sound really complicated so you hand it over to them and they can charge ou extra...and if you get it wrong one quarter, you can put it right the next (and have up to 3 years to claim anything you have missed.)

If I have read the second half of your post correctly, unitof1, whatever scheme your client is on does not affect how you charge. Flat Rate makes life very easy - you charge 17.5% (20%) on invoices and apply your flat rate to the amount you owe HM Customs and Revenue and you keep the difference to compensate you for any VAT you may have had to pay yourself. My Flat Rate is 13%, so 4.5% stays in my bank account. It is not hard.

And good book keeping should be done everyweek, so quarterly returns should be a doddle!:face-angel:
(No, I don't do my accounts every week either and rely on my Bank's Account texts to keep me up to date...):0
Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and well preserved body, but rather to skid in sideways, Merlot in one hand, Cigar in the other; body thoroughly used up, totally worn out, and screaming "WOO HOO, what a ride!
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#19
Quote:[SIZE=3]It is all there anyway and actually makes you more competitive.
[/SIZE]


.
Quote:My Flat Rate is 13%, so 4.5% stays in my bank account. It is not hard
.


Goodness blimy blinking, everybody?s vated. I still cant see why when the average salary in archaeology is between 17000 to 25000. Yes you might have expenses but I don?t see how they might add up to ?70000. How does paying vat make you more competitive. Coming next year vats its going to be 20%

Lamps,- the flat rate of 13% is that for digging type work, specialist? Must have been either a bloody good year or you put everybody else?s bills through your account
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#20
I was trying to resist commenting.....

You can opt to register for VAt upto the threshold. If you are working for somebody else who is VAT registered they can usually claim the VAT back meanwhile you can claim the VAT back on things you buy ie they are 17.5% cheaper. Being VAT registered only makes you less competative if you are working directly for private individuals and competing against others who are VAT registered.

Peter
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