Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: dazmond on June 02, 2020, 09:25:11 pm
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....another reason not to use them if your a sole trader thats not VAT registered! ::)roll
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source?
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source?
from another forum....a guy put a screenshot up.....
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check your emails lads........
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Yeh I had one yesterday.
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Brutal.
They just recently tried to double my bill.
Sack that.
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Quoted from GC...
Charging VAT on payments
Payments created in GoCardless are the full amount being charged to the customer. We do not add VAT on top of this. As such, if you do need to charge your customers VAT, you will need to incorporate this into the amount you create your payments for.
Please note that VAT applies to all GoCardless fees from 1 September 2020. Please refer to the VAT FAQs for more information.
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ive stopped encouraging my customers using gc now as they are taking too big a commission. I have had to increase some prices to cover this. . when I first started a few years back it was ok. They are getting like Virgin media. seems to creep up . D.D. or Bacs or Paypal, F&F
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if you ve got 300-400 customers on gocardless they ve got you by the balls.......
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ive stopped encouraging my customers using gc now as they are taking too big a commission. I have had to increase some prices to cover this. . when I first started a few years back it was ok. They are getting like Virgin media. seems to creep up . D.D. or Bacs or Paypal, F&F
i offer a few different payment methods
cash/cheque on the day of clean(free)(20%)
BACS(free)(60%)
standing order(free)(5%)
card payment on the day of clean(1.7% transaction fee)(15%)
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if you ve got 300-400 customers on gocardless they ve got you by the balls.......
I had nearly 1000.
Sacked them off.
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This was always my worry with go cardless.
I've stopped pushing it since they put the fees up in January and I think now I will stop offering it at all.
Shame as it was a great idea but now not viable for non vat reg businesses.
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Smart debit is cheaper. It takes me about an hour a week Vs no time whatsoever on gocardless and you need to know what =vlookup() means.
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Smart debit is cheaper. It takes me about an hour a week Vs no time whatsoever on gocardless and you need to know what =vlookup() means.
Hi Soupy.
Do you use the Bureau DD or managed DD?
Can it be integrated with aworka?
Thanks
Tom
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Why suddenly start charging vat? You can’t tell me they have only just become vat registered???
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Smart debit is cheaper. It takes me about an hour a week Vs no time whatsoever on gocardless and you need to know what =vlookup() means.
Hi Soupy.
Do you use the Bureau DD or managed DD?
Can it be integrated with aworka?
Thanks
Tom
There's no integration. There is an API available but you'd need to convince a developer to integrate it.
I have a bespoke package.
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Why suddenly start charging vat? You can’t tell me they have only just become vat registered???
It's s change in legislation as far as I know.
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Stopped pushing GC as my first choice after the last increase in charges that picked on the small transactions.
Only now use it to move slow payers onto.
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Wonder if Lee Pryor having a word with their CEO would sort this situation out 😂
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Just read this post. So this means for sole traders like myself (Who are well below the VAT threshold)let’s say a £25 house and they will take £5.00 VAT plus there fees is that correct? So will end up with less than £20. I’m going to need to move them back to BACS payments. How annoying!!
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Ps I did read on there terms and conditions that if you are under the VAT threshold to contact them and send proof etc??? Can someone explain this? Seems like a hassle to me
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Just read this post. So this means for sole traders like myself (Who are well below the VAT threshold)let’s say a £25 house and they will take £5.00 VAT plus there fees is that correct? So will end up with less than £20. I’m going to need to move them back to BACS payments. How annoying!!
Dont think so. They are just charging vat on the small fee they take.
It's your responsibility to add your own VAT to the transaction if you are registered.
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Ahh that’s not as bad then. So if the fee is 60 pence on a small job say it will only be 20% of the 60 pence fee? So 12 pence extra. Is that right?
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Ahh that’s not as bad then. So if the fee is 60 pence on a small job say it will only be 20% of the 60 pence fee? So 12 pence extra. Is that right?
Yes, I copied and pasted from GC website of the new changes from September on this thread too.
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Great thanks for that
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How would a VAT registered company go about claiming back the VAT?
Because the VAT is taken off of the total before it’s paid out, so the company would receive the total amount minus the fees and VAT. So it wouldn’t show on turnover so how can they claim it back? Or am I missing something?
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How would a VAT registered company go about claiming back the VAT?
Because the VAT is taken off of the total before it’s paid out, so the company would receive the total amount minus the fees and VAT. So it wouldn’t show on turnover so how can they claim it back? Or am I missing something?
Just been speaking to Mrs about this. We offer GC as a payment option and maybe have 100 or so on it. We’ll contact Chris at Aworka as I reckon it’s there that this needs sorting. We now use Aworka for VAT submissions so hopefully it should be easy. ???
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Just read this post. So this means for sole traders like myself (Who are well below the VAT threshold)let’s say a £25 house and they will take £5.00 VAT plus there fees is that correct? So will end up with less than £20. I’m going to need to move them back to BACS payments. How annoying!!
Nope.
It would be £25:
- 1% = .25p
+ .20p = 45p
+ 20% = .54p
So a £25 job you will be left with £24.46
It’s not massive, but add it on to every transaction it builds up. Like soupy 1000 customers it’s a lot.
Perhaps make the money back elsewhere:
- Small increase in price, even .50p or £1
- Offer garage door cleaning at £3 each time
- If you do addons charge an extra £5 or £10 than you would normally
Can’t even take cash payments anymore because no-one except the kebab van takes cash these days! :P
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How would a VAT registered company go about claiming back the VAT?
Because the VAT is taken off of the total before it’s paid out, so the company would receive the total amount minus the fees and VAT. So it wouldn’t show on turnover so how can they claim it back? Or am I missing something?
Just been speaking to Mrs about this. We offer GC as a payment option and maybe have 100 or so on it. We’ll contact Chris at Aworka as I reckon it’s there that this needs sorting. We now use Aworka for VAT submissions so hopefully it should be easy. ???
However, VAT is paid based on turnover, so what hits your account.
Say you do £150k ‘worth of work’ all on GC, you won’t get £150k each year in your account to pay the VAT on - but you are paying VAT on your fees, which you can’t claim back - is that correct?
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Ps I did read on there terms and conditions that if you are under the VAT threshold to contact them and send proof etc??? Can someone explain this? Seems like a hassle to me
Whereabouts is that please mate?
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Just found it.
All you have to do is send the last years tax return showing you’re under the VAT limit and a copy of an invoice showing that no VAT has been charged.
Pretty straight forward.
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How would a VAT registered company go about claiming back the VAT?
Because the VAT is taken off of the total before it’s paid out, so the company would receive the total amount minus the fees and VAT. So it wouldn’t show on turnover so how can they claim it back? Or am I missing something?
Just been speaking to Mrs about this. We offer GC as a payment option and maybe have 100 or so on it. We’ll contact Chris at Aworka as I reckon it’s there that this needs sorting. We now use Aworka for VAT submissions so hopefully it should be easy. ???
However, VAT is paid based on turnover, so what hits your account.
Say you do £150k ‘worth of work’ all on GC, you won’t get £150k each year in your account to pay the VAT on - but you are paying VAT on your fees, which you can’t claim back - is that correct?
Lost me. ;D
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https://www.smartdebit.co.uk/
i've used these guys for about 5 years.
very easy to deal with
i charge my customers a monthly fee (for the 4 weekly service) so for instance £10 a coal would be £10.83 a month (clean price * 13/12)
they are charged on the same date a month
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Can't understand why any window cleaner would want to use anything other than cash or bank transfer. Everything else just seems like a faff.
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Okay so all this panic over 9 pence extra on a £25 Job ? But Fair to mention it so if you show them proof you're on the flat rate maybe they'll save us also a few pence or is it only if below 85k ..
I understand Penny's do add up and at some point the line needs to be drawn but not worth stressing I think it's more feasible just crack on and clean windows its just 9p on £25 :/
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Okay so all this panic over 9 pence extra on a £25 Job ? But Fair to mention it so if you show them proof you're on the flat rate maybe they'll save us also a few pence or is it only if below 85k ..
I understand Penny's do add up and at some point the line needs to be drawn but not worth stressing I think it's more feasible just crack on and clean windows its just 9p on £25 :/
I agree, and there’s ways to recoup the cost.
The thing is GC started at just 1% of the transaction fee, so it was just .25p
Then they added .20p per transaction on top
Then now it’s +VAT
So what used to cost .25p now costs .54p - more than double the original cost, so I can see why some with lots of customers don’t want to pay the extra.
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Okay so all this panic over 9 pence extra on a £25 Job ? But Fair to mention it so if you show them proof you're on the flat rate maybe they'll save us also a few pence or is it only if below 85k ..
I understand Penny's do add up and at some point the line needs to be drawn but not worth stressing I think it's more feasible just crack on and clean windows its just 9p on £25 :/
I agree, and there’s ways to recoup the cost.
The thing is GC started at just 1% of the transaction fee, so it was just .25p
Then they added .20p per transaction on top
Then now it’s +VAT
So what used to cost .25p now costs .54p - more than double the original cost, so I can see why some with lots of customers don’t want to pay the extra.
Absolutely and particularly if you're working alone it's basically about 55p it used to be very cheap unnoticeable and a lot cheaper than PayPal etc
All they've done now is they decided to plus VAT because they know a lot of people are VAT registered and theyll just pay it so technically won't be extra cost to some and will keep thier profits up.
Looks like they're not going to be charging people under the threshold though so shouldn't be a problem anyway.
Look has to be a line drawn somewhere and I don't know for me personally I would say probably about £1 on 25 quid then I probably wouldn't encourage it as a payment option as much :)
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Can't understand why any window cleaner would want to use anything other than cash or bank transfer. Everything else just seems like a faff.
Cash is a faff.
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Can't understand why any window cleaner would want to use anything other than cash or bank transfer. Everything else just seems like a faff.
It come down to scalability.
If you are happy with your business how it works currently, your getting paid enough, have enough time, money is coming in in time, etc etc... no need to change.
But growing a business is best done by building systems that make you life easier and your business more efficient.
DDs are an amazing tool for building a scalable long term system in your business
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Thanks guys and Tom for the breakdown. I’m fortunate as in I only have 40 odd GC customers however appreciate for people like soupy 1000 customers will certainly add up. Thanks again. Defo keep the GC customers who are/ were slow payers and maybe the ones who you know are prompt at paying get them to just BACS it over (in soupy’s case I mean) 👍