Vat registered questions ??

[Scott_D]

Who’s vat registered
Is it a massive pain?
Are your accountant fees much higher?
Is there lots more paperwork/book keeping?
Any pros for it such as claiming back on fuel, tools?

Thanks

 

[ShaunCorbs]

We are

Depends I don’t think so but it depends what your used to accounts wise

Nothing much but depends like above

What are you doing now ? It’s the same but every 3 months need to pay the vat you’ve claimed minus anything you can claim back

Everything that has vat in regards to the business you can claim

 

[Scott_D]

Im taking over a maintenance contract for some park home/caravan sites with club houses, swimming pools, shower blocks.
The guy is retiring and passing it on to me, he is Vat registered but it could probably be done without going over the threshold.

It hope to be there full time so not too worried about the average home owner looking for cheapest quote

 

[ShaunCorbs]

Tbh it’s better for any commercial customer as they can claim the vat back off you

 

[SimonG]

Not me, yet!!

Talking to a friend that is, he says it made him better on the book keeping side due to the quarterly submissions.

We might all end up vat registered if they drop the threshold like they've been threatening.

 

[ShaunCorbs]

Not me, yet!!

Talking to a friend that is, he says it made him better on the book keeping side due to the quarterly submissions.

We might all end up vat registered if they drop the threshold like they've been threatening.

Tbh I can understand why people don’t want to but unless your hiding / cash in hand there’s not much difference so tbh I think they should get rid of the threshold and if your in business your vat reg

 

[Scott_D]

What are the benefits of it to a small business?

 

[ShaunCorbs]

Tbh not that many

Claim the vat back

More appealing to commercial/ business customers as they can claim the vat back on materials

 

[Harvest Fields]

Tbh I can understand why people don’t want to but unless your hiding / cash in hand there’s not much difference so tbh I think they should get rid of the threshold and if your in business your vat reg

Agree with the above mate.

 

[Stanios]

If you are solo not being VAT registered is pretty much how you can make a decent living. I used to get customers to buy almost everything. I would set up a basket for them to check out on boiler jobs. VAT is brutal, even after claiming everything back best case its 12% loss (in my case 16%).

 

[ShaunCorbs]

If you are solo not being VAT registered is pretty much how you can make a decent living. I used to get customers to buy almost everything. I would set up a basket for them to check out on boiler jobs. VAT is brutal, even after claiming everything back best case its 12% loss (in my case 16%).

Can you explain how your loosing 16% of your turn over as it should equal out?

 

[Harvest Fields]

If you are solo not being VAT registered is pretty much how you can make a decent living. I used to get customers to buy almost everything. I would set up a basket for them to check out on boiler jobs. VAT is brutal, even after claiming everything back best case its 12% loss (in my case 16%).

How does this work. Surely the vat is covered by the customer not you. If anything the negative is it makes you more expensive (that’s the negative)

 

[Last Plumber]

We are.
No it's no bother.
Approx £400 per year plus VAT.
Our sales and purchase invoices go into accountant every 1/4. They work it out, tell us what to pay. No trouble at all.
We think it best to be registered. From a commercial point of view it is better.

 

[Knappers]

I looked at going VAT registered before I bought my new van as it was over £4K in tax.
I decided to put my prices up instead as that way I make the money back in a year or so and after that it's profit for me.
I also looked at providing customer parts on larger jobs as an agent to keep turnover down. Basically charge parts at cost and add a fee, provide original receipts for parts and don't include them in turnover...
Customer can then claim back VAT on parts.

 

[king of pipes]

I keep my turnover down by getting the customer to purchase larger expensive items I only supply everyday materials loose out a little as I can't add a % mark up, but everything I supply is + 20% , the way it's going we are all going to be forced to go digital very soon there are software tools like Sage , QuickBooks ect to make our work lives easier it's just making the changes needed I have I appointment with my accountant to discuss the best way forward. Kop

 

[MOSSEP]

Ive been VAT registered for years, its never really caused any issues. The ability to claim back the VAT on all expenses like fuel, tools, computer equipment etc... out weighs any worry that a domestic customer may be put off by having VAT added to a labour bill. A large majority of my work is commercial or for VAT registered clients though, so they are not put off by having VAT charged to them, and on the odd big domestic job, methods of reducing VAT are often requested 😉

 

[Ben-gee]

…methods of reducing VAT are often requested 😉

Of course you walk away from these jobs with unscrupulous customers…😄

 

[MOSSEP]

Of course you walk away from these jobs with unscrupulous customers…😄

Of course, I would never entertain something like that guv 😉😇