Charge the client (ex VAT)
£1,150.00
You keep £150.00 - a 13% margin on the price
| Before VAT | £1,000.00 |
| VAT 20% | £200.00 |
| Including VAT | £1,200.00 |
Your figures, your sums - nothing is sent anywhere. 5% applies only to some work, like certain energy-saving installs.
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Questions
What markup should a builder put on materials?
Many trades add 10–20% to what they pay. It covers choosing, ordering, collecting, storing and the risk of returns or breakages. Whatever you add, say on the quote that materials include handling.
What is the difference between markup and margin?
Markup is added on top of your cost; margin is your profit as a share of the price. A 20% markup on £100 gives a £120 price and a 16.7% margin, not 20%.
How do I take VAT off a price?
Divide the price including VAT by 1.2 for 20% (or 1.05 for 5%). £1,200 including VAT is £1,000 before VAT and £200 VAT. Taking 20% off instead gives £960, which is wrong.
JobGuard adds your markup to every material on a quote, and VAT if you are registered.
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