[Mike Halliday]

if we are saying that most customer will accept an extra 17.5% amount  on their bill without minding why don't we all right now put our prices up by that amount.

if we are slightly below the vat threshold then this would give us an extra £11900 a year, which unfortunately would take us over the threshold.......... but instead we could take an extra 6 weeks paid holiday every year and still be earning the same amount

we also need to remember that some carpet cleaner are not totally honest so if the threshold is £70K then they will be really earning £85K as some cash jobs will be going in the back pocket.

[robert meldrum]

if we are saying that most customer will accept an extra 17.5% amount  on their bill without minding why don't we all right now put our prices up by that amount.

if we are slightly below the vat threshold then this would give us an extra £11900 a year, which unfortunately would take us over the threshold.......... but instead we could take an extra 6 weeks paid holiday every year and still be earning the same amount

we also need to remember that some carpet cleaner are not totally honest so if the threshold is £70K then they will be really earning £85K as some cash jobs will be going in the back pocket.

Reality !

[peter maybury]

I trade over the threshold and accept v.a.t. as a fact of life. The paperwork is not much more and a lot of people make far too much of it. I too try to sell the benefits of being a legitimate business. Many people who have expensive homes and furnishings (costing more than the v.a.t. threshold) think further than saving the cost of the v.a.t and feel securer knowing that they are dealing with a v.a.t. registered organisation.
It is totally impossible to quote on a lot of the commercial work unless you have the credibility of being v.a.t. registered and we would not have the range of equipment we have without the turnover that we have.  I accept that we have to be v.a.t. registered but feel it a more positive than negative situation. Customers are more likely to pay somebody £100 + v.a.t rather than £117.50.

Peter
www.carpetcleanercardiff.com

[MAX Carpets]

It has never been a problem, in fact 9 times out of 10 people say "Is that plus VAT?"

[Adam P]

Cant understand why someone should say all businesses should be VAT registered. Peculiar.

i think he was saying it would be better if everyone was vat registered so that then there is no disadvantage for businesses when they start to grow, making it a bit more even for businesses

[JandS]

So paying VAT makes you legitimate.

John

[derek west]

don't think i'll be vat registered till year 4 which is annoying as i can't claim vat back on my original equipment,

[Nigel_W]

Cant understand why someone should say all businesses should be VAT registered. Peculiar.

i think he was saying it would be better if everyone was vat registered so that then there is no disadvantage for businesses when they start to grow, making it a bit more even for businesses

Thank you - that is exactly what I meant. Not peculiar is it?

Nigel

[Dave_Lee]

Dave,

Did you get the wand?

Not yet, probably turn up on Monday.
I am happy staying under the vat threshold. If I was 15 years younger I would probably want to T?O more, but with my state pension due next year....
Dave.

[Joe H]

Cant understand why someone should say all businesses should be VAT registered. Peculiar.

i think he was saying it would be better if everyone was vat registered so that then there is no disadvantage for businesses when they start to grow, making it a bit more even for businesses

Thank you - that is exactly what I meant. Not peculiar is it?

Nigel

I would rather it be no one pays VAT.

Hardly likely to happen though

[peter maybury]

Being v.a.t. registered does set you apart from the people who trade part time and uninsured etc. It  gives people who are concerned about the horror stories of what can happen in this industry, confidence to do business with you.  The threshold is not a great deal of money and a lot of people would be suspicious of any business not achieving that amount of turnover. Certainly people living in the higher end of the market who are expecting to pay a decent figure for a professional service would see it as something to be expected.
There are certainly few industries that are able to operate below the v.a.t. threshold.
Peter
www.carpetcleanercardiff.com

[Joe H]

How many do you have working along with you Peter. Or are you solo.

[Mike Halliday]

peter there is so much rubbish in that statement I don't know were to start Basically you are giving your opinion as though it was fact

Being v.a.t. registered does set you apart from the people who trade part time and uninsured etc...no it doesn't.... so people who are not VAT regs don't have insurance  :

[it  gives people who are concerned about the horror stories of what can happen in this industry, confidence to do business with you. ][/i]..no it doesn't... for one thing people often agree to do business with you before price (and the inclusion off vat) is even mentioned

a lot of people would be suspicious of any business not achieving that amount of turnover how do they know what  turnover you have?

I think your sweeping statement  insults every person on this board who is not Vt reg'd

[Mike Halliday]

just had a bath and stewed over this issue some more

another thing....

its been suggested in this topic that being VAt reg'd gives some sort of credibility and sets you apart from other companies who will not be seen as more professional.

when does this happen? because from what I can gather until you actually start talking price the potential customer doesn't know if you charge VAT or not. that is unless your  leaflet, YP advert, website, newspaper advert etc..etc says...... "WE CHARGE VAT ON OUR PRICES".....   


 I've seen a lot of advertising and I can say I've never seen that sentence included.

if you do a professional presentation on your quotes most customers will have decided to use you before price is mentioned.

 if at that this point the mention of VAT influences their decision  it will be to not  use your services, rather than the opposite

[derek west]

mike
this one made me cringe

quote
Customers are more likely to pay somebody £100 + v.a.t rather than £117.50


shouldn't it read.....
customers are more likely to pay £100+vat rather than £100.... in which case, errr no they wouldn't

[Glynn]

Mike
Surely you must be vat reg ?, given the amount of leaflets you put out and your considerable time in the business.

[Mike Halliday]

Glynn, i personally only earned approx  £28k in the last year so I'm nowhere near the threshold

[Carpet Dawg]

peter there is so much rubbish in that statement I don't know were to start Basically you are giving your opinion as though it was fact

Being v.a.t. registered does set you apart from the people who trade part time and uninsured etc...no it doesn't.... so people who are not VAT regs don't have insurance  :

[it  gives people who are concerned about the horror stories of what can happen in this industry, confidence to do business with you. ][/i]..no it doesn't... for one thing people often agree to do business with you before price (and the inclusion off vat) is even mentioned

a lot of people would be suspicious of any business not achieving that amount of turnover how do they know what  turnover you have?

I think your sweeping statement  insults every person on this board who is not Vt reg'd

Here here...

And this nonsense about "commercial's not touching you if your not vat reg??!?!?" where does this idea come from? Have I been dreaming about the amount of commercials i have been doing lately then?

Like some have said, i take steps to stay below the threshold.

[Glynn]

Mike,
It's nothing to do with earnings, it's turnover.

[Mike Halliday]

sorry Glynn i should have been clearer, I personally have a turnover of approx £28k