Clean It Up

UK General Cleaning Forum => General Cleaning Forum => Topic started by: allshine cleaning on December 24, 2006, 05:11:46 pm

Title: vat
Post by: allshine cleaning on December 24, 2006, 05:11:46 pm

 :)Hi everyone merry christmas to you all,Please can anybody help on vat, I have just started a cleaning business and i do both domestic and commercial,im not vat reg so do i put vat on all my work as i dont want to regester yet

Title: Re: vat
Post by: Art on December 24, 2006, 05:22:45 pm

If your not registered then you can't  add VAT to your invoices

Arthur

www.scsf.co.uk

Title: Re: vat
Post by: allshine cleaning on December 24, 2006, 07:30:54 pm

thanks arthur,regards mike

Title: Re: vat
Post by: cloverclean on January 03, 2007, 05:49:55 pm

Not until your turnover is I think about £55000

Pat
Cloverclean
Dorset ???

Title: Re: vat
Post by: Liahona on January 03, 2007, 07:06:26 pm

You can register for Vat not even having started in the busines. It has nothing to do with any amount of turnover. Having said that once you reach a certain amount then you have to register. I cant remember what that amount is and I believe it has just changed. I didnt need to find out as I registered about 3 months before I started cleaning. Best, Dave.

Title: Re: vat
Post by: mk1 on January 03, 2007, 07:34:55 pm

£62.000 before you have to register.  we where registered then found it not worth it to be honest de-registered & happier  ;) ;)

Title: Re: vat
Post by: *Chris Browne on January 03, 2007, 08:59:23 pm

A lot depends on how much you are forking out for materials, you can claim back your vat then,    we are better off registerd, we had to in the end anyway,

When you do register take a look at the flat rate scheme, easier and less paperwork ;)


Chris

Title: Re: vat
Post by: Lesley J on January 03, 2007, 10:06:03 pm

we use the flat rate scheme and pay 11% I dont like it but there is no other way round it at the moment other than down sizing the business

Title: Re: vat
Post by: *Madmary's Cleaning Services on January 04, 2007, 02:16:23 pm

'New-Build' VAT exemptions apply.

£61,000 is the current mandatory registration limit, as of April 06.

We have just had to register as our gross exceeded £61,000 during the previous 12 month trading period up to December 06. (Awaiting confirmation)

Most of our work comes under 'New-Build' so we cannot charge developers VAT!  However, we must inform them of our VAT status.  Any other work we do, ie: Domestic cleaning, Communal area cleaning etc. we will have to charge VAT in future.

We opted against the 'flat - rate' because 90% of our income is VAT exempt.  The main problem with flat rate is that you are always paying the VAT man at the amount they estimate for you - and you can never claim anything back in any one year - even if, say, you lost a major contract and your income dropped!

We beleive we will benefit from VAT registration in the long run.  We won't be charging much VAT and so won't have to pay much back.  Also, don't forget, everything we pay for relating to the business - we are charged VAT - so now we can claim all of this back every 3 months.

Downside - unless you have the time and the ability to fill out all the forms etc. that VAT registration entails every 3 months - you will have to pay an accountant!

This year he will cost me £800.  For this he will file our annual business partnership return, the 2 partners individual returns and soon, our VAT returns 4 times a year.

Judge for yourself if this is value for money!

Title: Re: vat
Post by: allshine cleaning on January 09, 2007, 08:52:32 pm

Thanks everyone for the help on vat kind regards mike.

Title: Re: vat
Post by: *Chris Browne on January 10, 2007, 08:39:11 am

Dont be put off by vat, its actually one of the easiest things to work out, and the one form they send you every 3 months consists of nine boxes to fill in of which a few wont even apply ;D, as long as you write everything down as you go, it should not take more than a few minutes to fill in.



Chris

Title: Re: vat
Post by: mk1 on January 10, 2007, 01:33:53 pm

yer sorry £61.000 is the limit & as chris says the paper work is easy if you keep up to date according to the wife.

just be careful a vat bill of £2000 or £3000 can come a bit sharp every 3 months & the vat man will not wait..........ever !!!!!!  ;)

Title: Re: vat
Post by: chosker on January 10, 2007, 01:46:08 pm

QUESTION REGARDING THE POSTING THAT MAD MARY CLEANING AGENCY PUT UP REGARDING NEW-BUILD VAT EXEMPTIONS...

DOES THIS MEAN THAT EVEN IF THE WORK DONE IS CLEANING A DEVELOPING PROPERTY, THIS IS EXEMPT ALSO? I THOUGHT THIS WAS JUST FOR THE ACTUAL BUILDING WORK?

WE DO A FEW CLEANS FOR CONTRACTORS WHILE THEY ARE BUILDING AND PRIOR TO HABITATION - WOULD THIS BE EXEMPT??

Title: Re: vat
Post by: Tim Downer on January 12, 2007, 09:38:27 am

All Sparkle cleans, Builders Cleans or whatever you like to call them are zero rated on new developments. I am sure someone will clarify the rate for doing the show houses......as these are furnished but not occupied. Think they are zero rated too but will stand corrected if i am wrong.....Lol

Tim

Title: Re: vat
Post by: pdl on January 12, 2007, 11:26:18 am

Hi Tim

Showhomes are not zero rated normally because the sales office is normally part of the Showhome complex.  We do charge VAT on showhomes as they are furnished and visited every day.

How's business?

Regards

PCS

Title: Re: vat
Post by: Tim Downer on January 12, 2007, 12:09:30 pm

Is busy for me at the moment. You may remember i came out of the cleaning business to concentrate on a full time contract that i purchased, doing minor maintenance and porterage. Have someone in line to start here part time for me end of feb to free me up to get back into the cleaning game. Sadly....I missed it more than I thought i would. Lol

So we will see what happens this year.

You keeping busy?


Tim

Title: Re: vat
Post by: pdl on January 12, 2007, 02:16:28 pm

Not enough hours in the day, build up to Christmas was manic