Contract Xchange

taffy056

mstopham wrote: »

Well I passed my interview! Now to get the ball rolling on training, VAT registration etc.

best of luck with the rest of it, would hold off vat until you get the job though if i was you!

taffy056

watsonnicole1 wrote: »

Hi All,

Taffy - Thank you for the reply. I do also have a PC but it would need updating too as that similar spec to my laptop. You seem to be doing well so far.. well done :cool:

I have just had a email to accept for a telephone interview.. :j

How long is it before they would normally contact you?

N.x

Thanks for that well done on getting an interview, and they should contact you in a few days

mstopham

taffy056 wrote: »

best of luck with the rest of it, would hold off vat until you get the job though if i was you!

I will do, was going to go to the Inland Revenue offices near me and get all the paperwork I need for VAT and Self Employed. (Question I can't remember seeing answered, would this mean I am my own sole trading business? If so what other implications does this have?)

Need to crack on sorting a 2nd Line as well, whats your thoughts on this? Needed for the training? Can it wait til after, are you straight into calls when the trainings done?

IainLaff

i am a bit confused with some information on earlier posts and the more more recent posts.

Does the £1.20 quoted include or exclude VAT?

Thanks

Iain

taffy056

I have the answer to that one now, it includes the vat

littleange

taffy056 wrote: »

I have the answer to that one now, it includes the vat

How's it going?

So it's only £1.02 a call if you are paying standard rate VAT?

supermonkey

Hi all,
thought i'd post my calculations in case it helps anyone.
a useful site to calculate tax etc...
http://www.worksmart.org.uk/tools/tax_calc.php

figures based on 6 calls an hour dont look to great to me...
Income-
40 hours a week @ 6 calls an hour: 6 x £1.02 = £6.12 per hour or £244.80 per week or £979.20 per 4 weeks
Expenditure-£8.94 line rental per month (net of VAT) (Based on £10.50 inc VAT)
Livechange - £34.08 a month (net of VAT)
PaySource Direct fee - £11.62 a month (net of VAT)
Income Tax - £103
National Insurance - £61.52
Accountants fees around £50 per month
TOTAL COST (per month) - £269.16 (or £229.16 if no accountant fee)

Gross profit £979.20
minus monthly costs of £269.16
Take Home of £710.04 every month
This leaves a net hourly rate of £4.44 and a yearly take home of £9230.52
However, this doesnt take holidays into account. 22 days = 176 hours = £781.44
Leaving a yearly take home of £8449.08

Increasing the calls to 12 an hour is more promising, especially since I havnt taken into account the possible sales credits.
40 hours a week @ 6 calls an hour: 12 x £1.02 = £12.24 per hour or £489.60 per week or £1958.40 per 4 weeks
Expenditure-
£8.94 line rental per month (net of VAT) (Based on £10.50 inc VAT)
Livechange - £34.08 a month (net of VAT)
PaySource Direct fee - £11.62 a month (net of VAT)
Income Tax - £298.84
National Insurance - £169.24
Accountants fees around £50 per month
TOTAL COST (per month) - £572.72 (or £522.72 if no accountant fee)

Gross profit £1958.40
minus monthly costs of £572.72
Take Home of £1385.68 every month
This leaves a net hourly rate of £8.66 and a yearly take home of £18013.84
However, this doesnt take holidays into account. 22 days = 176 hours = £1524.16
Leaving a yearly take home of £16489.68

Hope that helps...

ps...anyone got an idea of the average ratio of sales to calls so I can factor that in?

littleange

supermonkey wrote: »

figures based on 6 calls an hour dont look to great to me...
Income-
40 hours a week @ 6 calls an hour: 6 x £1.02 = £6.12 per hour or £244.80 per week or £979.20 per 4 weeks
Expenditure-£8.94 line rental per month (net of VAT) (Based on £10.50 inc VAT)
Livechange - £34.08 a month (net of VAT)
PaySource Direct fee - £11.62 a month (net of VAT)
Income Tax - £103
National Insurance - £61.52
Accountants fees around £50 per month
TOTAL COST (per month) - £269.16 (or £229.16 if no accountant fee)

I work it out approximately (I think):

If you did work 40 hours a week for 48 weeks at 6 calls an hour
6 calls x £1.02 x 40 hours x 48 weeks = £11,750.40

Expenses
£14.50 + £5.81 = £20.31 x 26 fortnights = £528.06
Landline £8.94 x 12 = £107.28
Accountant = £600
Total £1,235.34

Turnover £11,750.40
Expenses £1,235.34
Net Taxable £10,515.06

Tax
£10,515.06 - £6,035 personal allowance = £4,480.06 x 20% tax = £896.01

National Insurance
Class 2 £2.30 week x 52 = £119.60
Class 4 £10,515.06 - £5,435 lower limit = £5,080.06 x 8% NI = £406.40
Total £526.00

Net Profit £10,515.06
Less Tax £896.01
Less NI £526.00
After deductions £9,093.05

Monthly Approx £757.75

Personally, I do my own accounting and I have got my landline for free from VirginMedia. There maybe other expenses too, like a bit of gas, elec, broadband and water, but prob not much.

Think I might look into the flat rate scheme and then might just pay something like 10% VAT on turnover - this would make VAT easier to do yourself I think. So you'd get £1.09 ish I guess but can't claim back VAT on expenses. You can also apply for annual accounting for VAT too.

littleange

Thanks for everyone's help on this thread.

I applied but my application has been declined and I am very disappointed. I've already ordered my CRB check and I bought a phone last week, so I guess I'm now out of pocket, good job my phoneline isn't costing my anything.

Spoke to someone on livehelp and they said to reapply in a few weeks, but if they don't want me now, then I can't see them wanting me then to be honest.

Hope this works out for everyone else.

supermonkey

still really unsure of this.... getting vat registered seems like a nightmare and i'm worried it'll be more hassle then its worth!

Its potentially very good, but is it realistically very poor!?!?!