Costs and pricing
How to compare PR agency day rates and VAT in England
Compare PR agency day rates and VAT in England: the 20% standard rate, the £90,000 registration threshold, disbursements and a like-for-like rate card method.
What to take away
- PR agency day rates rise with seniority and, usually, with London overheads; the table below is a method, not market data.
- VAT applies at the standard rate of 20% to most retainers, project fees and recharges.
- Registration is compulsory once taxable turnover in any rolling twelve months passes £90,000.
- Compare your shortlisted agencies on one scope, in one unit, on a VAT-inclusive basis.
- Companies House confirms the legal entity; ONS indices restate old quotes but cannot estimate a fee.
Illustrative day rates by seniority and region
The figures below are worked examples for method, not survey results, and exclude VAT. Replace them with quotes from your own brief.
| Role level | London example | English regions example | Unit |
|---|---|---|---|
| Account executive | £250-£350 | £200-£300 | Day rate |
| Account manager | £400-£550 | £330-£450 | Day rate |
| Account director | £650-£900 | £520-£720 | Day rate |
| Head of or senior counsel | £900-£1,400 | £750-£1,150 | Day rate |
London agencies carry higher office, salary and travel costs, so their rates sit above most regional rates. A specialist in Manchester or Leeds can still match a London generalist on a niche brief, because scarcity sets the price. Our Manchester shortlist compares local fees and credentials on one city brief.
How VAT applies to retainers, project fees and disbursements
PR services are standard-rated at 20% unless a specific relief applies, as HMRC sets out in VAT Notice 700, The VAT Guide.
A retainer and a project fee follow the same rule, taxed at the tax point rather than the date the work was done.
An agency must register once taxable turnover in a rolling twelve months passes £90,000, the test set out in HMRC's VAT Notice 700/1, Should I be registered for VAT? Below that, registration is voluntary, which lets the agency reclaim input VAT on photography, print and paid media.
Smaller agencies may use the Flat Rate Scheme (HMRC VAT Notice 733), which applies a single percentage to turnover instead of the difference between input and output VAT, or the Cash Accounting Scheme, which accounts for VAT when invoices are paid. Ask which scheme an agency uses: the invoice still shows 20% VAT even where the agency pays HMRC a different amount.
Disbursements behave differently. Under the rules in VAT Notice 700, where the agency pays a supplier as your agent and recharges the exact cost, the payment is a genuine disbursement and no VAT is added by the agency. A cost bought in the agency's own name is part of its own supply, so VAT is charged on top when it is recharged.
VAT-registered vs unregistered agency
VAT-registered agency
- Quote basis
- Fee plus VAT
- VAT line
- Shown
- Input VAT
- Reclaimable
- Headline number
- Not comparable
Unregistered agency
- Quote basis
- Single figure
- VAT line
- None
- Input VAT
- Not reclaimable
- Headline number
- Not comparable
Ask every agency for a VAT-inclusive total on the same scope. A registered agency quotes a fee plus VAT; an unregistered one quotes a single figure.
Comparing London and regional quotes on one scope
A rate card comparison is a table of the agencies you are considering: one scope and one unit per line. It is not an average across regions.
- Write one scope of work with deliverables, timeline and named team roles.
- Send that identical scope to every agency on your shortlist.
- Ask each for a day rate, a monthly retainer and a project fee.
- Convert every quote to one unit, such as days per month.
- Record whether each figure includes VAT and whether expenses are capped.
- Compare the totals, then compare the seniority behind each total.
Building a like-for-like rate card
- Write one scope of work
- Send identical scope to every agency
- Fix one unit for all figures
- Convert retainers and fees to that unit
- Price the whole engagement, not just day rate
Suppose Agency A in London quotes a retainer plus VAT, Agency B in Birmingham quotes less but bills travel, and Agency C in Manchester quotes a day rate for fewer days.
Converted to days per month at the same seniority, the three can land close together once travel and VAT are added back.
Our costs and budget guide carries those conversions into a single budget line.
What Companies House and ONS data can and cannot tell you
The Companies House register is free to search. It shows the legal entity, filing history and officers, so you can check size and structure before shortlisting.
It does not publish day rates, because those are commercial terms. Small agencies often file abridged or micro-entity accounts, so a missing turnover figure is normal, not a warning sign.
ONS regional accounts give gross value added and employee compensation by region. They support a claim about cost pressure, not a fee.
For quotes from different years, restate the old figure using the CPI series in the ONS inflation and price indices release.
Example: an agency quoted £500 a day in March 2022, when the index stood at 120, and the latest reading is 140. The restatement is £500 x (140 / 120) = £583.
That is a worked example, not a live figure. Read the published CPI series, base 2015 = 100, and record the base period and date you use.
Before you sign
- Check whether each quote is VAT-inclusive or VAT-exclusive.
- Check the scope and named team match across every agency.
- Check expenses are capped or billed at cost.
- Check the entity on Companies House matches the contract.
- Check termination, IP and payment terms.
Our contract terms check covers those clauses before signature.
Common questions
What is the VAT registration threshold for a PR agency?
£90,000 of taxable turnover in any rolling twelve months. Below that, registration is voluntary, and the standard rate on registered supplies is 20%.
Why are London day rates higher than regional ones?
Office space, salaries and travel cost more in London. The gap narrows when a regional agency specialises, travels to you, or subcontracts.
Can I compare a day rate with a monthly retainer?
Not directly. Convert the retainer to the number of days it buys at the named seniority, then compare days per month.
Do I need an agency's accounts before choosing one?
No. Accounts confirm structure and scale. Your decision rests on the quoted scope, the team and the VAT-inclusive total.
