[gary evans]

Hi All,

How many are vat registerd here.

Looking to expand & thinking of doing domestic i know the work is out there, picked about 10 already, if i want them.

How do you get on with invoiceing customer, do you give them a reciept every time.

How do you declare it in turn-over etc.

Probably somebody will say talk to accountants, thats next also.

Got to go.

Gary

[Trevor Knight]

Hi Gary,

We are VAT Registered and clean both commercial and domestic customers.

Firstly, as long as you incorporate the 17.5% into your price then thats fine, you can say to a customer is £10 + VAT or just tell them its £12 including VAT (the extra few pence is just for simplicity).

The one thing to consider though is this.

Once you register you are held to STRICT operating terms and conditions. The VAT Office is far more ruthless than the Tax Office and will go through your books with a fine tooth comb.

Make sure you have your VAT money held seperately so you pay your bill each qtr, they don't like waiting for their money!!!

As far as invoicing is concerned, as long as you have them at your end the domestic customer doesn't necessarily need one.

Keep an accurate record of what you spend and your income. This is vital for your inspections.

Make sure ALL your invoicing has your VAT number on them, it is LAW that your number is displayed.

Allthough it makes absolutely NO DIFFERENCE to the standard of work produced, for some bizarre reason larger corporations feel safer the fact that you are registered and seem to lean towards a company that is registered rather than a company who isn't. I think it gives them a sense of stability.

Check this link for all your information and make sure you get a GOOD accountant!

Best wishes,

Trev

http://www.hmrc.gov.uk/briefs/vat/calculating.htm

[Moderator David@stives]

Gary

Are you already registered for vat ?

Or do you just want an idea of how it fits in with domestic work ?

Dave

[gary evans]

Hi Trevor,

Thanks for the advice a lot in place already but, think youve answered questions for others reading.

Hi Dave,

Yes vat registered.

Main thing is looking to expand business, there seems to be more money now in domestic than commercial. I need a lot of work this year to replace & expand. Ihave one option of commercial work but 6 month frequency & very dirty also dont like to pay right price.

Or

Look into domestic easier work & reasonable money. Just collecting thats what i hate, thats why i stopped domestic about 10 years ago. But, seen threads on stamp addressed envelopes etc. So looking into these.

Recently set Father-in-Law up with van & system worked with him to leaflett & knock, picked up over 100 jobs. Since then i,ve brought 6 houses doubled them in area also got others near to if want. min £25.00 upto £50.00. Big houses but large ammounts of money in one go. Keep being offered houses & have always turned them down, now just give them to other wc or father in law.

Gary

[gary evans]

Hi All

Any more vat registered on here.

Looking for comments on how it works for you, your customers & tax man etc.

Gary

[Trevor Knight]

Hi Gary,

If you want a specific question answered please ask away.

If I can help you I will if not i am sure others on here can?

Trev

[Helen]

Gary, what comments are you looking for specifically? For us it works the same way as not being VAT registered the only thing that changed was the paperwork side, but it's not that bad if you are an organised person

[gary evans]

Trevor & Helene.

Thanks for info.

1: Is dealing with cash, all my current work is on invoice basis. So would need to start cash flow accounts etc. Including daily takings & full list of clients etc.

2: We have only done commercial for years & always turned down domestic, instructing our clients that we are only commercial. How does this work with yours. I,ve picked up some very high profile government contracts which realy is for commercial only contractors.

3: Employees dealing with cash & usual how much turned over etc.

Could do with turn-over but is it more hassle.

Gary

[Trevor Knight]

Hi Gary,

Yes you will need a cashflow account, you will need to treat this as a seperate bank account and pay in/out accordingly. It wont make any difference regarding your VAT as that is done based on invoicing and not how they paid but if they paid, likewise with any expenditure paid for by cash, it just comes out of your petty cash account.

If you gain a domestic contract just include or add the VAT and either take an invoice on the day for payment if the customer wants one of just create a file invoice for your records and pay against that.

My staff are personally responsible for the cash they handle, if it goes missing they replace it. Works fine.

There is a small element of hassle but generally speaking its worth it. Some of our commercial contracts pay on 60 even 90 days, domestic generally pay within 30!

[gary evans]

Thanks again Trevor.

Just one point how exactly do you create this file file invoice for say example:

100 customers varying from £10 to £20 per clean. Total £1200

Have you got to show an invoice per job e.g 100 invoices per month.

gary

[Trevor Knight]

As long as you keep accurate records of what work has been cleaned and when and if paid or outstanding then that is sufficient.

Some domestic customers will ask for a VAT invoice others won't.

For those that do, print out and give to them, for those that don't mark off as cleaned and paid as you would do normally. Just allocate the appropriate amount of VAT for each transaction.