Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: richywilts on May 23, 2011, 06:59:48 pm
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im about 12 grand away from vat threshold but with way my current canvasser is pulling in work il soon be hittin the dreaded vat threshold.when i say approaching vat i mean when i do a report on window cleaner pro thats what my predicted turnover is
im wondering what my options are and what others have done in the past my work is prob 95% domestics id like to grow my business and not standstill under the threshold as there is still plenty of opportunity in my area for growth.
should i charge people vat and expect too lose a lot of custom as 20% is quite an increase or pay for it myself which i cant really afford.
should i go for more commercial work or set up a seperate business???
any help is appreciated
cheers
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well done richy hitting that sort of turnover is good going i know it means paying vat thou!
how long you been at it?
oh by the way i think you can go for the flat rate of vat which i think is 11% i would try and up your prices by 3-5% and just absorb the rest.
that way its a smaller hit i think a flat rate of vat means you cant claim vat back but best to speak to an account!
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go flat rate , and price increase and you wont lose much
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been established for three yrs in august but only 2 years have really traded for first year was bit of a shambles,looks like flat rate could be way too go then
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I set up two companys and stay below vat but my first company is ltd! and I aim only class as a employee! but the 2nd company is classed as a gutter clearing company so diffrant to window cleaning
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I set up two companys and stay below vat but my first company is ltd! and I aim only class as a employee! but the 2nd company is classed as a gutter clearing company so diffrant to window cleaning
Different telephone numbers, business addresses, vehicles ect for the two companies?
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I set up two companys and stay below vat but my first company is ltd! and I aim only class as a employee! but the 2nd company is classed as a gutter clearing company so diffrant to window cleaning
Doing something like this really does need expert advice. The fact you've done it and are fine does not prove or certify its ok, it just means you never been questioned over it. Any advice i've had seems to suggest thats what you've done is not ok if you're looked into.
A simple question like what vehicle is used and what staff are used may even help to clear up the confusion.
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I set up two companys and stay below vat but my first company is ltd! and I aim only class as a employee! but the 2nd company is classed as a gutter clearing company so diffrant to window cleaning
Why do I suspect another disaster is just waiting to happen.
For anyone thinking this is a clever idea forget it because if you get 'a visit' the end result will be that IR will consider these one and the same and will calculate backwards, hitting YOU for the Vat due from that date.
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i understand that if you are a sole trader then in effect YOU are the company, so this means they total your income from any 'companies' you set up. if this is the case it doesnt mater if you say one is gutter cleaning and the other window cleaning. if you are the sole trader of them both the VAT office consider them one income.
that's the advice i got off my accoutant
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i understand that if you are a sole trader then in effect YOU are the company, so this means they total your income from any 'companies' you set up. if this is the case it doesnt mater if you say one is gutter cleaning and the other window cleaning. if you are the sole trader of them both the VAT office consider them one income.
that's the advice i got off my accoutant
only if tey are same or simillar business, dosent apply if they are totall differant, ie - one car sales and one window cleaning
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iv told you till im blue in da face
my father in laws an accountant
go n see him lad ??? ??? ??? ???
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i understand that if you are a sole trader then in effect YOU are the company, so this means they total your income from any 'companies' you set up. if this is the case it doesnt mater if you say one is gutter cleaning and the other window cleaning. if you are the sole trader of them both the VAT office consider them one income.
that's the advice i got off my accoutant
only if tey are same or simillar business, dosent apply if they are totall differant, ie - one car sales and one window cleaning
sorry i belive richards right,if your a sole trader then its grouped as one because you are a SOLE trader you would have to go ltd and be a employee paying PAYE etc and producing accounts for a ltd company and set of accounts for self assessment as a self employed sole trader