Hidden 20% VAT charge

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Oz

• January 13, 2020 08:25

A proper joke, PPH charging us 20% VAT that never shos up anywhere apart from your bank account!

20% fee, 20% VAT and plus 20% Tax.. Robbery 

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  Haris

  • January 20, 2020 16:09

  Hi Oz,

  first of all I have to say that I am really sad that you see it this way, since:

  1. Our fees follow a tiered structure (20% -> 7.5% -> 3.5%). For more details, please see here.
  2. We don't charge fees for withdrawing your money to a UK bank.
  3. We don't charge any taxes as you have mentioned.

  I would be very interested in knowing your take on the above so as to clarify things in case there has been a misunderstanding.

   

  Kind regards,

  Haris

  Product Manager @ PeoplePerHour

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  Oz

  • January 20, 2020 19:39

  Hi Haris

  Thank you for your respond. Here my conversation with Sofia, I've been charged 20% VAT

  https://v2uploads.zopim.io/2/A/X/2AXxjfizxBQ0GS8r7gtjCITkBwoWcaRo/9ea892819fa8a3b6826d6907c619905a67c56295.png

  (11:08:25 AM) Oz Fenerci : dont you think the charge should be £128.5 instead of 154.50?
  (11:09:52 AM) Sofia: Please allow me a moment to have a look at these
  (11:11:31 AM) Oz Fenerci : £50 for £250 and £78.75 for £1050 ?
  (11:11:42 AM) Sofia: Thank you for your time! Let me clarify this more
  (11:12:49 AM) Sofia: the Sub Total excluding VAT of this service fee is £128.75 however you have also been charged with 20% UK VAT (£25.75) that is why the total charge is
  £154.50

   

  Regards

  Oz

   

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  Oz

  • January 20, 2020 19:51

  By the way, "20% TAX" is annual Tax return as a taxpayer. Usually, we can see the PPH fee figure when we send the proposal. But the actual amount we earn it's lower in Escrow because PPH taking another 20% VAT. I just realised this lately when I was checking the fee percentages in my account and it was different on final payment...

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  Haris

  • January 21, 2020 10:58

  Hi Oz,

  thanks for replying.

  Regarding the 20% VAT, since we are a UK-based company, we are obliged to charge 20% on the commission fee. This is stated explicitly in our Terms and Conditions (section 8.2 -> all amounts have the "excl. VAT" note)

  As for the tax, when you raise an invoice it's your responsibility as a tax payer to add the invoice VAT that you then need to pay to the tax authorities, an amount that doesn't have to do with PPH. Please note that we do not charge any commission on this amount (invoice VAT).

   

  I hope the aforementioned points will help you clarify things. Stick with us because we will be doing some great things in 2020!

   

  Best regards,

  Haris

  Product Manager @ PeoplePerHour

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  Oz

  • January 21, 2020 15:56

  Hi Haris

   

  Thank you for your reply.

  I think you guys should make people aware of this charge in the proposal stage (20% VAT). And then people can see the real amount that goes into their account.

  I m hoping that PPH drops the fee, it's quite high. I didn't read the terms after you guys made the changes and I wasn't even checking the percentage (kind of trust thing).

  %7.5 one fee for all reasonable. Remember, the job budgets are here quite low and hard to get  7.5% fee works you know, and we end up paying 60% in total with our Annual tax every year. Too much payout!!

  Best

  Oz

   

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