peirre:
Dieseldoforme:
.I can’t see the point of getting involved with VAT if you don’t need toSo an additional 10% on top of the net figure into your pocket each invoice via the small business rates scheme wouldn’t tempt you then?
Charge the client: net + 20% vat = £gross
Pay HMRC 10% of the vat each quarter
You keep 10% for yourselfStill not interested ■■?
Only an idiot would let this pass, easy money, legal aswell 
if work via Umbrela company,can also claim same,just not Vat.but more simple
peirre:
So an additional 10% on top of the net figure into your pocket each invoice via the small business rates scheme wouldn’t tempt you then?
Charge the client: net + 20% vat = £gross
Pay HMRC 10% of the vat each quarter
You keep 10% for yourself
If we’re being pedantic (and I usually am…) then it actually works out as:
Charge the client net+20%.
Pay HMRC 10% of the gross invoice.
Keep the rest for yourself.
Which actually works out at an extra 8% in your pocket.
Example:
£100+VAT = £120.
10% of £120 = £12.
Leaves you £108, which is 8% more than the £100 you would have had if you didn’t do VAT.
Paul
scanny77:
Conor:
Jack-knife:
Some company’s only employ you if your self- employedHow can they employ you if you’re self employed? If they employ you then you become an employee…
you are employed by your company. they contract your company to do a job and you are the employee that your company assigns to complete the contract
Yes, we know how it works, Conor was just pointing out that if you’re self employed a company contracts you and doesn’t employ you.
Paul
repton:
peirre:
So an additional 10% on top of the net figure into your pocket each invoice via the small business rates scheme wouldn’t tempt you then?
Charge the client: net + 20% vat = £gross
Pay HMRC 10% of the vat each quarter
You keep 10% for yourselfIf we’re being pedantic (and I usually am…) then it actually works out as:
Charge the client net+20%.
Pay HMRC 10% of the gross invoice.
Keep the rest for yourself.Which actually works out at an extra 8% in your pocket.
Example:
£100+VAT = £120.
10% of £120 = £12.
Leaves you £108, which is 8% more than the £100 you would have had if you didn’t do VAT.Paul
Its more profitable my way
£100 + VAT = £120
Me £10
Thee £10
Not had a problem doing it this way, TBF, I think they are just happy to get you on board and paying on time
Stanley Mitchell:
Its more profitable my way£100 + VAT = £120
Me £10
Thee £10Not had a problem doing it this way, TBF, I think they are just happy to get you on board and paying on time
Just better hope you never get an HMRC inspection then as you’re supposed to pay them 10% of the gross invoice, not the net one.
See hmrc.gov.uk/vat/start/schemes/flat-rate.htm which states:
You calculate your VAT payable to HMRC by applying your flat rate VAT percentage to your ‘flat rate turnover’. If you are still in your first year of VAT registration, remember to reduce your flat rate percentage by one.
Your flat rate turnover is all the supplies your business makes including all:
VAT inclusive sales for standard rate, zero rate and reduced rate supplies
Paul
repton:
Stanley Mitchell:
Its more profitable my way£100 + VAT = £120
Me £10
Thee £10Not had a problem doing it this way, TBF, I think they are just happy to get you on board and paying on time
Just better hope you never get an HMRC inspection then as you’re supposed to pay them 10% of the gross invoice, not the net one.
See hmrc.gov.uk/vat/start/schemes/flat-rate.htm which states:
You calculate your VAT payable to HMRC by applying your flat rate VAT percentage to your ‘flat rate turnover’. If you are still in your first year of VAT registration, remember to reduce your flat rate percentage by one.
Your flat rate turnover is all the supplies your business makes including all:
VAT inclusive sales for standard rate, zero rate and reduced rate suppliesPaul
Tongue in cheek actually, but, as usual on here, a sense of humor breakdown again 
For the record, I`ve just paid my VAT for the last quarter, and, I can confirm i paid my due monies, 10% of the GROSS invoice value 
Conor:
You cannot claim VAT on what you buy
Under the simplified scheme, you can claim the VAT back IF the single purchase cost of the item is in excess of £2.5K (it maybe £2.2K but someone will correct me if I`m wrong)
ie; if you buy a vehicle for the business. but items costing less than that figure and you cannot claim it back
Andrejs:
if work via Umbrela company,can also claim same,just not Vat.but more simple
Umbrella Cos tend to sign their clients up en-mass to the simplified scheme, however if you read my post about this elsewhere on TN, its unlikely youll actually see any of that money. Somehow the monies recouped under the scheme seem to disapear into the accounting ethos of the umbrella Co. (no doubt thats another huge amount they`re raking in)
Which is why the guy who I mentioned in the thread was gobsmacked when I pointed out that he actually could get the 10% back, and it was real money, as he though it was more of a mythical amount of cash that he never saw
Conor:
How can they employ you if you’re self employed? If they employ you then you become an employee…
Conor,
I share your wonderment.
People frequently get two completely different ideas and then mix them up, which causes all kinds of confusion.
A contract for service is NOT the same as a contract of service.
The distinction between those two types worker / boss relationships is really important.
You can read more about it here:
scanny77:
you are employed by your company. they contract your company to do a job and you are the employee that your company assigns to complete the contract
Nobody mentioned here about being a Ltd company and its not relevant to the thread.
Many of us here are/have been self employed as sole traders.
dieseldave:
People frequently get two completely different ideas and then mix them up, which causes all kinds of confusion.
Much like lots of other things on here
What simplified hourly rate could a self employed holiday-relieving Class One
Driver charge that would be attractive to a Transport Manager client ?
(By “simplified” I mean ONE SINGLE hourly rate for ALL hours:
Mon-Fri,Saturday,Sunday,Bank Hol,Days,Nights,No
Premium rates,no Overtime rates,no Holiday Pay etc)
(MINIMUM WEEKLY BOOKING OF 5 X 8 HOUR SHIFTS)
How does £13.50 X 40 = £540 pw MINIMUM sound ?
.
.
I am currently self-employed. But that could change by the end of today!
Driveroneuk:
scanny77:
you are employed by your company. they contract your company to do a job and you are the employee that your company assigns to complete the contractNobody mentioned here about being a Ltd company and its not relevant to the thread.
Many of us here are/have been self employed as sole traders.
why is it not relevant? as i understand it, the OP is exploring self employed pros and cons, not just sole trader. my mate is a limited company and he bills the clients through invoices and he is VAT registered. that seems relevant to the 1st post and its something i am considering as i set up a business account 2 years ago and havent activated it yet. i have to admit that i hadnt considered remaining sole trader and just cutting out NOVA rather than going limited company to get rid of them 
.
.
bigvern1:
I am currently self-employed.But that could change by the end of today!
“Secure” and “worry-free” PAYE employment certainly has a value.
.
.
scanny77:
…as i understand it, the OP is exploring self employed pros and cons…
That’s correct - I’d like us to discuss ALL the options open to The Professional Driver.
I’ve heard that most self-employed Drivers spend the
quiet cold months (Jan, Feb & March) in Barbados, Bermuda or the Bahamas.
I’m sick of Blackpool, Brighton & Bognor.
.
.
bigvern1:
I am currently self-employed. But that could change by the end of today!
Good luck hope you do get it
There are a lot of advantages to being a Ltd company tbh
Your £££ per hour have to take in account that you are paying your own tax & NI also would be an advantage to put some away for a rainy day so to speak
.
.
Excuse me, I’m thinking aloud…
…I wonder what is the most that an average Class One Agency Driver could earn?
OK - £8 ph basic, £12 after 8 hours, £12 Sat, £16 Sun.
15 hours Sat £180
15 Hours Sun £240
15 hours Mon £148
13 hours Tues £124
13 hours Wed £124
13 hours Thu £124
84 hours MAX (although 84 CANNOT be done EVERY week)
£940 (not bad)
AVERAGE OF ALL HOURS £11.20 per hour
Hmmmmm… Less than I thought.
.
.
Dieseldoforme:
.
.
Excuse me, I’m thinking aloud……I wonder what is the most that an average Class One Agency Driver could earn?
OK - £8 ph basic, £12 after 8 hours, £12 Sat, £16 Sun.
15 hours Sat £180
15 Hours Sun £240
15 hours Mon £148
13 hours Tues £124
13 hours Wed £124
13 hours Thu £12484 hours MAX (although 84 CANNOT be done EVERY week)
£940 (not bad)
AVERAGE OF ALL HOURS £11.20 per hourHmmmmm… Less than I thought.
.
.
OK that basic for 8 hr is just above average being employed but a lot of firms dont like paying much more than that even if self employed