[p1w1]

Really don't see what all the fuss is. Lots of window cleaners are vat registered. We have been for 10 years. No problems. I think it's a good thing to have a totally even playing field for everyone. As with most things it's just the fear of the unknown that worries people.

Yes people will start having to run things more like a proper business. Lots you can do to balance the money back to you, go ltd and do away with n.i and pay less income tax with dividends. Only put your price up by 10%, swallow the other 10% but even that out with claim backs on kit, fuel ect.

As for going collecting more cash, you can't rent or buy a house based on cash or a decent car or holiday. You can't have a decent life based on cash. More will get done by the tax man and vat avoidance is about the worst thing to be hit with.

Lee, how does it work then regarding claiming vat back on expenses as Dry Clean mentioned. So for instance something cost 1k including vat do you take back the £200 into your profit and then claim on the other £800 or is it done differently?
In a way i kind agree in that an even playing field is fair. I think what makes it a bit harder now  is if you have been up and running  for years your way of charging doing things doesnt take say paying VAT into it, as if you were just starting out you can account for it better knowing those are the rules to begin with, mentally thinking its a bigger deal going VAT registered overnight as to say pre planning it (if that makes sense).

[֍Winp®oClean֍]

It'll never happen, the threshold might lower but not to anything near 20k as it will just incentivise and turbo charge the cash only industry! It would force price increases on many small businesses putting many in trouble and eventually end up with less tax revenue in the coffers from this sector.

[p1w1]

It'll never happen, the threshold might lower but not to anything near 20k as it will just incentivise and turbo charge the cash only industry! It would force price increases on many small businesses putting many in trouble and eventually end up with less tax revenue in the coffers from this sector.

No i dont think it will happen as the article explains but i wouldn't be surprised if there are changes coming. All the fun in running your own business/ working for yourself i suppose 

[Lee Pryor]

If you buy something that is £1000 with vat then you claim £200 off your quarterly vat bill and the remaining £800 is a business expense for that tax year.

[Stoots]

Really don't see what all the fuss is. Lots of window cleaners are vat registered. We have been for 10 years. No problems. I think it's a good thing to have a totally even playing field for everyone. As with most things it's just the fear of the unknown that worries people.

Yes people will start having to run things more like a proper business. Lots you can do to balance the money back to you, go ltd and do away with n.i and pay less income tax with dividends. Only put your price up by 10%, swallow the other 10% but even that out with claim backs on kit, fuel ect.

As for going collecting more cash, you can't rent or buy a house based on cash or a decent car or holiday. You can't have a decent life based on cash. More will get done by the tax man and vat avoidance is about the worst thing to be hit with.

Yes but the 85k buffer allows people to get things in ace before they take on Vat. They can get systems in place, accountants, get an employee or 2 and generally get themselves sorted and ready to steam into vat with momentum behind them.

If the threshold was refused to say 20k it would mean many who start out from nothing with no money are getting hit almost straight away, they cannot reinvest all they earn back in for growth as vat is turnover based so they are getting g no financial breaks whilst they get things in order. It's making things much harder right from the start, whereas the current threshold allows people to start up.

It's on saying nothing to worry about when your doing 500k turnover already and have already benefitted from the system. It's also on if you've paid your mortgage off and are winding down but for guys just starting it out it's a major kick in the buys that a lot won't or can take on the chin.

The only positive I can see is it will literally force a new business to sink  or swim, do or die. Theres no point having a middle ground it will be either earn under 26k or whatever and evade tax and vat or get a job stacking shelves Vs push on right from the start and risk everything to earn enough to cope with the Vat. Being a sole trader earning less than about 60k Year will be completely pointless.

[Lee Pryor]

I was answering a previous question not say who's better off or not.

[Dry Clean]

I was answering a previous question not say who's better off or not.

Sorry misread the answer, so deleted, quick reply. lol.

[Og]

Really don't see what all the fuss is. Lots of window cleaners are vat registered. We have been for 10 years. No problems. I think it's a good thing to have a totally even playing field for everyone. As with most things it's just the fear of the unknown that worries people.

Yes people will start having to run things more like a proper business. Lots you can do to balance the money back to you, go ltd and do away with n.i and pay less income tax with dividends. Only put your price up by 10%, swallow the other 10% but even that out with claim backs on kit, fuel ect.

As for going collecting more cash, you can't rent or buy a house based on cash or a decent car or holiday. You can't have a decent life based on cash. More will get done by the tax man and vat avoidance is about the worst thing to be hit with.

This.

[dd]

its never gonna happen.if philip hammond goes ahead with this there will be a furious backlash(like the NI hike)and he ll do another massive U turn.

100% agree. The media always like to over-hype things and look at most controversial/worst case scenarios. Just chill.

[p1w1]

Just target conservative voting customers and you can blame them for their price rise 

[Dry Clean]

Really don't see what all the fuss is. Lots of window cleaners are vat registered. We have been for 10 years. No problems. I think it's a good thing to have a totally even playing field for everyone. As with most things it's just the fear of the unknown that worries people.

Yes people will start having to run things more like a proper business. Lots you can do to balance the money back to you, go ltd and do away with n.i and pay less income tax with dividends. Only put your price up by 10%, swallow the other 10% but even that out with claim backs on kit, fuel ect.

As for going collecting more cash, you can't rent or buy a house based on cash or a decent car or holiday. You can't have a decent life based on cash. More will get done by the tax man and vat avoidance is about the worst thing to be hit with.

Yes but the 85k buffer allows people to get things in ace before they take on Vat. They can get systems in place, accountants, get an employee or 2 and generally get themselves sorted and ready to steam into vat with momentum behind them.

If the threshold was refused to say 20k it would mean many who start out from nothing with no money are getting hit almost straight away, they cannot reinvest all they earn back in for growth as vat is turnover based so they are getting g no financial breaks whilst they get things in order. It's making things much harder right from the start, whereas the current threshold allows people to start up.

It's on saying nothing to worry about when your doing 500k turnover already and have already benefitted from the system. It's also on if you've paid your mortgage off and are winding down but for guys just starting it out it's a major kick in the buys that a lot won't or can take on the chin.

The only positive I can see is it will literally force a new business to sink  or swim, do or die. Theres no point having a middle ground it will be either earn under 26k or whatever and evade tax and vat or get a job stacking shelves Vs push on right from the start and risk everything to earn enough to cope with the Vat. Being a sole trader earning less than about 60k Year will be completely pointless.

To be honest Adam that shouldn't make a difference as you just have to allow for the 20% from the off, it will make it harder in
areas where customers are already pushed to the wire especially if interest rates and inflation start to go up even further, put it this way I know where I would make the first saving if I had to tighten the purse stings.
For others where things aren't just as tight it wont make the slightest difference to the playing field or how they run their business they will just have an extra 20% in tax to pay.

[The Jester of Wibbly]

It will never happen. Stop being so gullible 

The uproar won't be for us. It will be the public that will face the cost as they pay vat on more services.  VAT is not a tax on self employed it's a tax for people buying our service.

[Dry Clean]

Really don't see what all the fuss is. Lots of window cleaners are vat registered. We have been for 10 years. No problems. I think it's a good thing to have a totally even playing field for everyone. As with most things it's just the fear of the unknown that worries people.

Yes people will start having to run things more like a proper business. Lots you can do to balance the money back to you, go ltd and do away with n.i and pay less income tax with dividends. Only put your price up by 10%, swallow the other 10% but even that out with claim backs on kit, fuel ect.

As for going collecting more cash, you can't rent or buy a house based on cash or a decent car or holiday. You can't have a decent life based on cash. More will get done by the tax man and vat avoidance is about the worst thing to be hit with.

This.

Good you actually get this, can you please explain why I cant buy a holiday and so on with cash and what a life based on cash means.
Plus how can window cleaning ever have an even playing field ?
Just one more, people who win work, clean, keep work, get paid , pay their taxes, my question is do they have to start paying vat before being considered to be running their businesses properly.
Sorry to be a pain but this business jibber jabber just goes over my head.

[andyM]

What I find really annoying is that VAT was supposedly introduced for "luxury items" (imperial leather soap and hai karate talcum powder etc.), not bleedin' window cleaning.

[p1w1]

It will never happen. Stop being so gullible 

The uproar won't be for us. It will be the public that will face the cost as they pay vat on more services.  VAT is not a tax on self employed it's a tax for people buying our service.

100% agree , not to forget all the other smaller services you have, haircuts, guy to cut the grass(I'm lazy) etc.etc. Unfortunately window cleaning is nothing more than a luxury  so thats where the cut backs start for those on the tight budget, at the end of the day it's down to the homeowner do decide what they feel is most important to them, some would give up that extra Costa coffee and some would rather have a packet of fAgs instead. For the last 5-6 years I only  focus on the person who i think i know can afford the luxury of having their windows cleaned on a regular basis.

[p1w1]

What I find really annoying is that VAT was supposedly introduced for "luxury items" (imperial leather soap and hai karate talcum powder etc.), not bleedin' window cleaning.

How dare you miss out old spice aftershave 

[Dry Clean]

It will never happen. Stop being so gullible 

The uproar won't be for us. It will be the public that will face the cost as they pay vat on more services.  VAT is not a tax on self employed it's a tax for people buying our service.

LOL, why would the public be in an uproar, do they give off when you get your tax bill after all it them who pay that and it
costs them 29%.

[Slacky]

Really don't see what all the fuss is. Lots of window cleaners are vat registered. We have been for 10 years. No problems. I think it's a good thing to have a totally even playing field for everyone. As with most things it's just the fear of the unknown that worries people.

Yes people will start having to run things more like a proper business. Lots you can do to balance the money back to you, go ltd and do away with n.i and pay less income tax with dividends. Only put your price up by 10%, swallow the other 10% but even that out with claim backs on kit, fuel ect.

As for going collecting more cash, you can't rent or buy a house based on cash or a decent car or holiday. You can't have a decent life based on cash. More will get done by the tax man and vat avoidance is about the worst thing to be hit with.

This.

That.

[Dry Clean]

What I find really annoying is that VAT was supposedly introduced for "luxury items" (imperial leather soap and hai karate talcum powder etc.), not bleedin' window cleaning.

Well I suppose if they consider Tampons a luxury item it was only a matter of time until they got round to window cleaning. lol.

[Soupy]

Funny that. Generally, those who are already VAT registered reckon it good, those who aren't don't.

Who'd a thunk it eh?