VAT for marketing/ad agency

[peanut_pea013]

We're a small marketing agency: we run PPC campaigns for our clients.

We charge a monthly retainer + 5% of ad spend, and are in the process of registering for VAT.

I see there's a flat rate for VAT of 11% for Advertising. Is this the correct rate for us to register with?

What VAT rate do we charge our clients?

Do we charge VAT on both our monthly retainer & the % of ad spend, or just the monthly retainer?

Thanks for your help!

 

[Scalloway]

You charge 20% VAT on all your invoices.

 

[jf-financial]

Be careful with the flat rate scheme as you have to think about the relatively new 'Limited Cost Trader' category which is 16.5% which you may be captured under:

https://jf-financial.co.uk/2016/12/07/vat-flat-rate-scheme-changes-2017-limited-cost-traders/