The Impact of Flat Rate VAT changes
The Impact of Flat Rate VAT changes
If you switch to the full scheme then your quarterly accounting will be more time consuming and you will in many cases require our services to offload the burden as well as ensuring that you avoid costly mistakes and penalties .
If you de-register then you lose the administration work : but you cannot claim back any VAT costs that you suffer in the course of your business .
If you are a Contractor – What is your Worth ?
‘ Many people gravitate from the world of direct employment to the uncertainty of working solo as a contractor . In this field it can be difficult to establish a fee rate that is fair to you and fair to your clients . It has to be more or less in line with the market , as far as you can assess that , and it has to reflect your abilities and potential to add value to those you work for .’
Starting Out
A relatively soft way of beginning is to enrol with some employment agencies and see what rates they offer and what you in turn will earn from them . You will obviously look to improve on your earnings as and when you float freely , but it gives you a marker as to what your skills and experience can earn .
Sooner or later you have to embark on a negotiation and that may always be uncomfortable : but you must approach it with seeming confidence and be prepared to seek a little above the going rate in the expectation that the person on the other side of the desk will need to haggle you down somewhat , if only to show that they have got a good deal .
Research and Presentation
What is essential is that you have done your homework and are able to defend your worth . For more details , see below .
Thus you need to keep abreast of the going rates by checking online with job boards and industry publications
There is plenty of data online and via agencies and advertisements on what people are offered for specific assignments in your particular market sector .
For an advertised position , either directly or via an agency , you must assemble the facts on what the project or ongoing task entails , and set down where your skill set matches the list . But go further : sell yourself and where you can add further value due to previous experience and successful work that you have completed . you may already be part way through a project for this organisation and there is now a need to renegotiate due to changing circumstances .
Without being too aggressive about it , you have an advantage if things have gone well so far and you should be prepared to ask for better terms – just as any employee would based on experience and increased seniority .
Watch for shifting sands – without complaining , you may have drifted into new responsibilities and tasks that were not in your agreed specification . Time now to take stock and seek the correct rate for the work being done and the objectives that they expect you to meet . Beware the Competition
You may be in pole position now , but that does not guarantee you work for life . There are plenty of others out there who are building their CVs and who may be cheaper than you in order to get their contracting career under way .