PPH charges a Service Fee for Sellers based on earnings: the more you earn on PPH the less you pay.
Here's how it works:
1. For the first £175 that you earn in a month, the Service Fee is 15% (excl. VAT)
2. For every additional pound that you earn in that month, you pay a Service Fee of just 3.5% (excl. VAT)
3. Earnings each month are calculated on the dates that Buyers have paid your invoices (not on the dates that you have raised your invoices)
4. The Service Fee is automatically collected from your PPH Wallet after the funds from each invoice are paid in to your Wallet.
Note: the minimum Service Fee is £1 (excl. VAT) per invoice.
You have raised three invoices to three Buyers: Invoice A (£100), Invoice B (£200), Invoice C (£50). All three invoices are paid by the Buyers in March so your earnings on PPH in March are £350.
You pay Service Fees as follows:
- Invoice A: £15 excl. VAT (i.e. 15%* £100)
- Invoice B: £15.63 excl. VAT (i.e. 15%*£75 + 3.5%*£125)
- Invoice C: £1.75 excl. VAT (i.e. 3.5%*£50)
- Total Service Fees = £32.38 (excl. VAT)
The effective total Service Fee on these earnings is just 9.3% (excl. VAT).