Pricing Method

[Sean Kelly]

Smudger you are probably a sole trader. If so, then you are not VAT registered & you should not be adding VAT onto customers bills. I am a sole trader and if my day rate is £150 then that is what the customer pays (i.e. no VAT). When I buy materials/tools etc I pay VAT on my purchases. At the end of the year I deduct the cost of all the materials/tools/petrol costs & running costs of my business from my labour charges. The end result is my profit. When I submit my TAX returns, the Inland Revenue will work out what TAX I should pay.

If you are not a sole trader then you will need to call the Inland Revenue and tell them your circumstances.

I went on a half day (free) business course run by the Inland Revenue. They will answer all your questions and tell you how you should complete tax return etc.

It really is quite simple, and definitely nothing to worry about. Maybe you could look up the term ‘sole trader’ on the internet.

So for the moment please don’t worry about VAT. Just keep things simple for now.

Now to answer your original post………………..I’m based in West London and I’m still on the £150-£160 a day rate, and that’s based on a very long day.

Good luck.
Sean

 

[Stewart]

Smudger you are probably a sole trader. If so, then you are not VAT registered & you should not be adding VAT onto customers bills. I am a sole trader and if my day rate is £150 then that is what the customer pays (i.e. no VAT). When I buy materials/tools etc I pay VAT on my purchases. At the end of the year I deduct the cost of all the materials/tools/petrol costs & running costs of my business from my labour charges. The end result is my profit. When I submit my TAX returns, the Inland Revenue will work out what TAX I should pay.

If you are not a sole trader then you will need to call the Inland Revenue and tell them your circumstances.

I went on a half day (free) business course run by the Inland Revenue. They will answer all your questions and tell you how you should complete tax return etc.

It really is quite simple, and definitely nothing to worry about. Maybe you could look up the term ‘sole trader’ on the internet.

So for the moment please don’t worry about VAT. Just keep things simple for now.

Now to answer your original post………………..I’m based in West London and I’m still on the £150-£160 a day rate, and that’s based on a very long day.

Good luck.
Sean

If your a sole trader, it's up to yourself if you wish to be Vat registered or not. Unless you turnover more than £70,000 then you have to be vat registered by law.

 

[Graham100]

"No not yet (although I think the turnover figure is about £68k before you have to), but is there an assumption that the customer has paid VAT on your labour? If so wouldn't you be expected to pass that on? I will probably have to phone them, just wondered if other people did"

If you are not registered or turning over the £68k you don't have to hand anything over to the VAT man. The downside is that you can't claim back the VAT on your purchases, as a sole trader you are by far better off not being VAT registered.

I charge my time at what I think would be £150 per day minimum, but my work rate means I end up getting less.

 

[mikethetile]

your in the right zone for wilts area smudger

 

[mikethetile]

sean

London prices are down due to the high number competing for work, im now competing with london based firms for work and they are undercutting me as well as swallowing their travel costs

I have a job to look at in wilts smudge , ill let you know when I know more, I may take the whole job on and sub out

 

[Smudger]

Thanks for the consideration Mike. Just about finished complete bathroom refit so can show work. Started job today that will probably take me close to Christmas, nothing booked in after that as yet.

 

[Dave Ramsden]

you should be aiming for 150+. After you have deducted income tax and diesel, somedays theres hardly owt left!