[Chris Bailey]

Being VAT registered I include VAT in my prices when quoting for work.  Does your price include VAT or do you say that's £158 + VAT

Opinions Welcomed

Chris

[lee_gundry]

domestic i quote inc vat
commercial quote plus vat

Lee G

[mark_roberts]

How has VAT affected your current domestic customer base and also new domestic business?

Do they accept easily?

thanks
Mark

[dave washbrook]

would you consider registering for vat even if your not earning the threshold amount, the benefit being that you can claim the vat back on equipment brought during the last 3 years or is it not worth the hassel


dave

[Dean Haywood]

most customers want to know the total amount they are going to be charged. I always quote domestic inc VAT



Dean

[Prestige1]

I have always found it better if you quote the price pause and then say plus VAT, this works for me.
Kind regards Phil

[Karl Wildey]

No longer vat registered but I used to include it in the price.
£80 + vat makes £94, so if you quote 80 and then she ask/or add on the 14.00  the custard sees she is losing £14.00.
If you quote £94.00 and she says is their Vat on that, you say no and she is happy.

Strange but it works better to put vat on your price quoted

[Chris Bailey]

I agree with the majority, Inclusive of VAT Mrs Custy the price will be.....

Like Lee domestic = inc VAT, commercial = + VAT


Mark, I registered for VAT way before getting near the threashold as I am also a contract cleaner and did this for credability, no other reason as some companies won't deal with you if your not VAT registered.  From the domestic front, then I don't feel that VAT is needed for credability, your just throwing 17.5% of your profit away.

Dave, Simply put NO!  especially if your running a paperbased accounting system as calculating the VAT every quarter used to be a days work alone.  Is it worth the hassle to claim a few hundred pounds? when, in all fairness I would rather bag the 17.5% on sales invoices as extra profit.  And if you did, would you increase your prices by 17.5% or include it in your current price structure!

Chris

[Graeme@Access]

IF you dont do over 58k in domestic sales per year,  dont register for vat.  Open a second company for commercial cleaning, register it and therefore get the credability?  So you rent your equip to the other company when needed etc.

Just a theory... but maybe they put you in jail for things like that   

Graeme
ACS

[Derek]

Graeme

You have opened a can of words with that statement!

I know a fair few cleaners who operate a two tier system within their businesses i.e. Vat on Commercial, no vat on Domestic... the dilemma arises in the fact its the same person, the same van, the same machine in both situations.

Customs & Excise look upon that as one business...all VAT accountable.

You need to set up two distinct Companys to operate a two teir system apparently..that means a lot of doubling costs, insurance, accountancy fees etc.

There was the classic case a few years ago featured in the papers..Hairdresser rented out chairs in his salon to self employed stylists. Visit from Customs & Excise deemed, in their infinite wisdom, that they all shared a common commodity...the door...this rendered them one business and bingo.... all vat accountable.

Derek

[Karl Wildey]

I was going to do similar scheme, cc and disaster restoration. The accountant said it would be fine as long as you cover yourself renting eqipment etc. In the end I decided it was not worth the hassle. Its a lot of hard work and if you get it wrong and the g-man does not like it, you are in trouble and all this to save 17.5% on dosmetic cleans, is it really worth it.

[Graeme@Access]

hehehe

Yeah i did think it was a bit obvious and if it was legal then everyone would be doing it.  Better not get on the wrong side of the tax dudes or they start looking at you under a microscope.

Cheers

Graeme
ACS