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UK General Cleaning Forum => General Cleaning Forum => Topic started by: Malcal on November 16, 2006, 07:43:54 am

Title: Domestic customers and VAT
Post by: Malcal on November 16, 2006, 07:43:54 am

Hi all
Will very soon need to register for VAT. Have mostly commercial customers and just a few regular domestics. I don't think I will be able to increase the charge by the 17.5% and keep the customers. There is a competitor close to me who operates seperate commercial and domestic businesses from the same address and same phone number. I am led to believe that they do not charge VAT to the domestics. Is this OK ?.
Regards Malcal

Title: Re: Domestic customers and VAT
Post by: www.crawleycarpetc on November 16, 2006, 09:19:53 am

No!

He must have a partner that runs the second business, the simplest thing to do is ring the vat office and you will be clearly informed with the right information.

Rob.

Title: Re: Domestic customers and VAT
Post by: Neil Mc Anulty on November 16, 2006, 04:03:23 pm

The competitor will need a good accontant soon. I got caught by the vat for the same thing. I was selling chemicals to businesses and operating a cleaning service thinking because it was two different businesses that I didnt have to charge vat for the cleaning service.
How wrong was I? Lucky it was caught on early and didnt have to repay more.

Cheers

neil

Title: Re: Domestic customers and VAT
Post by: Malcal on November 16, 2006, 08:27:50 pm

Rob
I think the 2 businesses are operated by a wife & husband.
Regards Mal

Title: Re: Domestic customers and VAT
Post by: John Kelly on November 16, 2006, 08:54:55 pm

As long as one is a limited company you don't have to charge vat providing the turnover isn't above the threshold. Reason is a limited company is a stand alone entity. Even though you may "own" it you are actually only an employee as a director.
If you had 2 soletraderships or partnerships then the combined income is taken into account.

Title: Re: Domestic customers and VAT
Post by: pdl on November 23, 2006, 08:51:53 am

Contact the VAT Office they will make everything clear as Mud!

Title: Re: Domestic customers and VAT
Post by: Fred Gullan on November 23, 2006, 01:40:27 pm

Operating two buisinesses that are so similar by two people in the same household is a very dodgy area. The clock is ticking for these people. when they go down more business for you and maybee some customers willing to pay the extra 17.5 %