Commission charge

[GRD Credit]

Hi all

I have met with a client today and agreed (against my better judgement but there you go!) to charge a commision of 25% if I am successful in collecting a debt on his behalf rather than my normal approach which is a per hourly charge.

Question - I quoted him 25% but not being VAT registered myself it didn't occur to me to consider the VAT element. The invoice I am chasing is, as near as makes no odds, £2,000 plus VAT. If someone had offered you 25% would you expect to pay £500 (£2,000 x 25%) or £575 (£2,300 x 25%)?

Many thanks

[Indizine]

25% of the job lot!

[limeminds]

25% of total bill VAT Included

[sjr4x4]

I'd expect 25% of the whole amount inclusive of vat.

I was advised to get VAT registered from day 1, as it saves having to worry about it when you go over the threshold.

Also from a business point of view, I'm always suspicious of non VAT registered firms, as it can give a small/part time operation impression.

[GRD Credit]

Small I may be - part time I definitely am not!