Different locations, different rates

[marius123]

Wondering if this is a bit of a no no...

Contract for a client is going to involve some days working locally and some days working in a different city.

Client has suggested two different rates for days at home and days away. I'm wondering if anyone can see any issues with this... As far as control goes I'll have a certain amount of say as to when I need to be at which site.

[aoxomoxoa]

I had a similar discussion with my client (a small consulting firm I provide services for as an associate, on a contract-by-contract basis) a few months ago when we were discussing an overseas project for their end client. The question was whether to agree a higher rate (approx £200/day more) when working overseas to cover the inconvenience and personal disruption, than when working on the same project from the UK. In the end we decided it was going to be too much hassle for all concerned to manage two rates on the same gig, so we agreed to split the difference and just increase my standard rate by £100/day.

Suited me nicely because that's now become my rate on all contracts with them, even when I work from home

By the way, the 'inconvenience' of working abroad was shocking - imagine having to spend half the winter working in Mallorca which never got cooler than about 22 degrees C ! But I coped.

[SueEllen]

You could claim expenses plus VAT for being made mutually agreeing to work in a different location.

[aoxomoxoa]

You could claim expenses plus VAT for being made to work in a different location.

Uh oh, NLUK IR35 rant alert

[SueEllen]

Uh oh, NLUK IR35 rant alert

Yeah OK.

[vwdan]

You could claim expenses plus VAT for being made to work in a different location.

I've done both this and multiple rates and IMHO there's not much in it however I was invoicing direct for both.

Who are you invoicing OP?

[MrMarkyMark]

You could claim expenses plus VAT for being made mutually agreeing to work in a different location.

Better to get them to pay them on top, surely

Edit - I believe SE and I were actually saying the same thing

[marius123]

I'm invoicing a small software house for this. I've worked for them in the past and they've always been reasonable and paid on time etc. I don't think the extra admin would be an issue for them.

There are also going to be expenses on top of this. The extra is for the inconvenience as someone says. The other city does generally have higher rates there as well.

[missinggreenfields]

You could claim expenses plus VAT for being made mutually agreeing to work in a different location.

That's what I've done in the past - set a day rate that I was happy with to work from any location and then added expenses to be anywhere other than home. It helps to focus the budget minds on whether you really need to be in the office or not.