charging VAT to domestic customers - Window Cleaning Issues

Window Cleaning Issues - Canvassing, pole systems, pricing, problems, etc.

charging VAT to domestic customers

Posted by paul (paul), 19 November 2003

hi all
can anyone enlighten me on an issue i have coming up i have to start charging VAT from January i know my commercial customers wont be affected but i dont think my domestic customers will like have to pay extra on top of there window cleaning bill form january has anyone else encountered this issue Huh

paul smith
www.reflectionswc.co .uk

Posted by easycleanwindows (easycleanwindows), 19 November 2003

hi the way i done it was as i earn more commercially for my residential was not to charge more but say if i was getting 6.00 for a small house charge them 4.95 and say 1.05 was the vat then if 10.00 job them 1.75 vat and charge 8.35 for the actuall clean then what you loose there a couple of quid you make up on the commercial side

Posted by paul (paul), 19 November 2003

thanks steve i never thought of it that way

Posted by easycleanwindows (easycleanwindows), 19 November 2003

glad to help that way you dont loose many and youll soon pick up another house to make up for it

Posted by Polepro (Polepro), 20 November 2003

I had the same worries when I went vat registered, turned out not to be a problem though. I added the vat to my charges and never lost a customer, in fact people viewed my business as being more professional and it meant I was a bonified business that was hear to stay, not fly by night.

Best advise is to put all the vat into a savings account so that its there when you need to pay the vat bill, any interest it gains is yours!

Tom

Posted by Kimm (Kimm), 20 November 2003

R u married? How about splitting your businesses, put the commercial in your name and the residential in your wife's name, then you might not be in the higher rate tax band aswell. Just a thought - its not tax evasion its tax avoidance (loop holes)

Posted by STEVE71163 (Steve Lowe), 20 November 2003

Hi Paul,
I went vat registered around 1989 and i was a bit worried about the customers reaction but i just explained to the customer that we had to go vat registered and we would have to add vat and i did not loose one customer Cheesy

After all your not gaining extra money its customs and excise

Steve

Posted by pdhanson (Silly Philly), 24 November 2003

Regarding Kimms suggestion about splitting the business to avoid charging VAT to domestic customers.

I used to work for a VAT accountant, and this practice is known as "Artificial segregation". C & E are very hot on it, and if they find out you are doing it, (which they will on your very first VAT visit), they'll not only charge YOU the full amount,regardless of whether you increased your prices or not, but also a penalty of about 20% on top.

Dont do it!

The Silly One

Posted by paul (paul), 25 November 2003

IVE ALREADY TOLD ME DOMESTIC CUSTOMERS ABOUT THE VAT CHARGE FROM JANUARY AND THEY ALL SEEM FINE ABOUT IT SO I HAVE ISSUED A NOTICE TO ALL DOMESTIC CUSTOMERS ABOUT THE EXTRA CHARGE AND WHAT THERE NEW MONTHLY BILL WILL BE AND IF THEY CANEL THATS LIFE THERES PLENTY MORE WORK OUT THERE
THANKS FOR THE ADVICE WELL RECIVED[img][/img]

Posted by Clean_Waterless (Clean_Waterless), 28 November 2003

Hi Paul

We were face with the same problem. Before we were Vat reg. we anticipated the problem & loaded the price by 17.5%. When we registered, the customer didn't realise and we continued as usual.

Alot of private customers collect vat recipts for their own businesses anyway.

Good luck

Gary Mansfield
The Waterless Car Cleaning Company

Posted by paul (paul), 28 November 2003

THANKS FOR THAT GARY BUT I THINK MY CUSTOMERS WILL NOTICE THE RISE IN PRICES ON MY DOMESTIC SIDE

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