Its good to get to that stage, well done on getting there. I too am in the same position. I have one van and one guy who works for me - not employed. Had a very good year this year, way beyond expectations, which then does bring its headaches. Do I absorb the VAT and pay flat rate? I worked out I'd need approx another £1100 a month for profit to be the same. But it wouldn't be, because I'd need a part timer, who would cost about £850 a month. So far thats £1950 extra a month I need. And then buy and run a second van say £150 a month (probably more tbh). Total £2100 extra I need. And thats not making any extra profit. So thats a lot of work to do. I looked at the commercial side of things, which can help but again you need a shedload of it. Plus the 8% you 'gain' you pay tax on twice - 20% corporation tax, and then personal tax. The taxman isn't silly, they know how to get their money, the flat rate isn't really a benefit. Do I pass on the VAT to my customers? A few I could, but theres lots of windies who already are cheaper than me.
I know of a guy who turns over a good sum. But when everything is paid (2 employees + him, 2 vans, VAT, everything else) he's no better off financially than when he had 4 solid days a week by himself, but now has a lot of extra work to do and the guys who work for him cause him lots of grief.
If you want to run a fairly decent sized business and don't mind managing people and what comes with it I think it starts to make financial sense about 4 vans in. Thats a lot of work to get and a lot of workers got through as well, and a lot of bills. It works well for Smudger who has Mrs Smudger. Someone who doesn't have a Mrs Smudger will then need to find someone as trustworthy and as good as Mrs Smudger, or they will have to be Mrs Smudger themselves.
I have a plan which I'm not going to go into right now but I think its one that makes sense. At the end of the day the bottom line is profit, so its a case of minimum headaches/stress and maximum profit.
Its good that there's many on here doing really well, keep it up lads!
Tom