Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: lyndy on July 13, 2010, 08:04:45 am

Title: What to do about vat with a round with just domestic
Post by: lyndy on July 13, 2010, 08:04:45 am
The guys with just domestic custys and doing over the £68000 mark,do you take the hit on the vat or charge it, if you charge it more often than not you will cost more than another w/c do you still pick work up.can you run 2 companys with nearly the same name to get round the vat?
Title: Re: What to do about vat with a round with just domestic
Post by: darren clarke on July 13, 2010, 08:07:24 am
if you run two wc companys to avoid the vat and he finds out he will decided they are one company and screw you,
Title: Re: What to do about vat with a round with just domestic
Post by: Smudger on July 13, 2010, 08:09:31 am
No you can't run 2 companies.

and you will have to charge vat - and certianly  pay it

Darran
Title: Re: What to do about vat with a round with just domestic
Post by: lyndy on July 13, 2010, 08:12:04 am
Ok,do you guys charge vat and do you find it prices yourself out of the Market?
Title: Re: What to do about vat with a round with just domestic
Post by: darren clarke on July 13, 2010, 08:18:42 am
i dont charge vat  as am no where near the 68 grand a year,   if you are earnign that on domestic only they you must be busy as hell,  a lot depends on your area,   some place seem to have a set price on what the max is you can charge  and it isnt all that high in some areas
Title: Re: What to do about vat with a round with just domestic
Post by: lyndy on July 13, 2010, 08:35:12 am
We are not there at the moment,just looking ahead we want to get big but fear the vat rule may keep us just below the £68000
Title: Re: What to do about vat with a round with just domestic
Post by: Sunshine/Cleaning on July 13, 2010, 08:52:02 am
A mate of mine had to go VAT reg and he put his price up and explained that it included the VAT and a small rise. He didn't loose any.

You can always apply to pay a flat rate which for window cleaners is 10% I think.
Title: Re: What to do about vat with a round with just domestic
Post by: Sean Dyer on July 13, 2010, 10:10:10 am
go flat rate and increase prices by 10 %

no bother then

only problem is extra accounting

I would imagine if you are doing that well turnover wise though you will have staff etc and will probably find more beneficial going more into commercial where vat is not an issue 99% of time
Title: Re: What to do about vat with a round with just domestic
Post by: lyndy on July 13, 2010, 10:24:11 am
You still have to charge 17.5 percent 20 next year
Title: Re: What to do about vat with a round with just domestic
Post by: Sean Dyer on July 13, 2010, 10:43:49 am
You can charge what you want the government dont care as long as they see you are passing there cut back which on flat rate is 10%

so dont pass it on to domestic custys and you lose by 10% or increase slightly

on commercial they expect the 20% vat anyway ...

Its not as bad as you think, most businesses manage with vat as they have too , window cleaners are usually fortunate enough to make a good living under its threshold due to a lack of significant overheads , i could work with one guy and profit about £35000 a year and not have to pay vat , but if you want to expand you must cross it simple as , or not be totally honest about cash but i doubt you wanna go down that road
Title: Re: What to do about vat with a round with just domestic
Post by: Dave Anderson on July 13, 2010, 06:34:01 pm
Here in Holland you pay VAT 19% from week 1 day 1 regardless....

You just have to factor it into your working.....I suspect that in the future you may well see that threshold come down in the U.K....

Dave.
Title: Re: What to do about vat with a round with just domestic
Post by: Sean Dyer on July 13, 2010, 07:07:52 pm
Here in Holland you pay VAT 19% from week 1 day 1 regardless....

You just have to factor it into your working.....I suspect that in the future you may well see that threshold come down in the U.K....

Dave.