[lee_gundry]

well i have done my first month as vat registerd.

i have quoted 88 jobs in sept.
lost 4 (not phoned back)

i have kept my prices the same plus vat for carpets

increased my prices by 10% plus vat for upholstery

so taking the plunge has not lost me any work compared to previous years

a lot of work we have done over sept has also been good for booking in extra work.

i was talking to my customer services adviser (glynn) whome mentioned the fact that even though new customers use you for the first time while being vat reg may put them of for any other work in the future,well this is where the extra work has mainly come from.

Lee G

[Dave_Lee]

Hi Lee,
I suppose a lot depends upon what your pre vat prices were in the first place. If most of your clients thought you were under priced (as happened to me a few years ago) then the added vat may bring your prices up to a more realistic level, in their eyes.
However if your prices are near the local maximum or above, then adding the vat on, may well put a lot of people off. With your loyal repeat clients, I would think that most would just accept the higher price, knowing that they will get value for money anyway.
Three years ago I put up my charges 50% in one go, and rather than losing work I got busier, could have kicked myself, I should have done it earlier. Ive increased them a further 10% since and are due for another 10 - 15% now.
If I registered for vat. my next increase would have to be 27.5% to 32.5% in order to not absorb any vat myself. Would I be confident enough to raise my prices that much?
Dave.

[Shaun_Ashmore]

Remember that you are better off financially if you ad VAT to your original prices as you will then claim VAT back from your purchases therefore your purchases become 17.5% cheaper.

If you find that work iis not going your way then reinvested the VAT savings into advertising and get more calls.

What goes aroung comes around, unless you are the VATman and he is in a win win situation.

Shaun

PS VATman only takes 17.5%, Mrs will take more

[George-Reid]

Guys
Don't forget about the flat rate scheme
You charge 17.5% on all jobs you can claim back 17.5% on capital purchases new van etc.
But you pay a flat rate on turn over for carpet cleaning you may find it is around 11%.
You need to check for your own business but as a service company you should find this saves you cash as your purchases are low. Have a look on the vat mans web site its all their.
Cheers

George

[Kinver_Clean]

Don't forget that when you register you can claim the vat back on previous purchases. Van, mc etc. It can be a nice little bonus.
Trevor

[Dennis]

Look in to the cash accounting scheme, we were in that. We de-registered 3 years ago so I forget the details.