[♠Winp®oClean♠]

been speaking to the accountant today and ive decided to go vat registered from april, prob the best time to do it as prices need increasing as never had price increase in 3-4 years hopefully my customer will understand its needs to be done to grow the company hopefully itll make me some savings, the accountant has got it through to me that it shouldnt cost you more money its should make me savings in the long run, i was getting worried as iv always looked at it as another cost

I'd get a second oppionon on that mate.

Worst thing you could do IMO.

[Sean Dyer]

IAN IM GOING TO DO PRICE INCREASE AS HAVENT PUT PRICES UP IN 4 YEARS ON LOWER PRICED WORK I THINK IL ET AWAY WITH 20% BUT ON JOBS OVER 15QUID I THINK IM GNA HAVE TO SWALLOW SOME

sounds like a plan of action to me ..... im doing price increases from April with some underpriced stuff going up a few quid ... early jobs were Ive not charged enough for connys mainly but most else going up by a pound or two.

Im doing a price rise of around 20% across the board some a £1 some £5
But not had one for few years

[lee smart]

vat what a joke avoid it like  :-[a lot of hassle for nothing,i have been trying to de-register vat as we have dropped below the 72,000 cap but the tax man wont let us .it just seems like another bill to worry about

[keyser soze]

go the flat rate option . you charge custys 20 percent extra. (wont matter on commercial cause they can claim back the

 vat) and the vat man wants 10 or 12  per cent of that so you get to keep whats left . downsize to that is you cant

claim vat back on fuel and general expenses. im thinking of it and talked to accountant about it . do the sums if you

earn 80 grand then that gives you 96 grand with vat . you give the vat man 8 grand . thats how i understand it. of

course remember the acc wants a chunk of that and vat will need to be up to date every quarter or there will be penalties

[David Kent @ KentKleen]

 Your accountant will love you going vat registered as he will be charging you every 3 months for submitting your vat returns! I dont think you will like that!. Why not get rid of your unit? this way you would have 1 less expense and make a greater profit! IMO you will need a turnover of £100k to be any better off than just keeping under the vat thresshold. I might be wrong!!  
Whatever you do I hope it works mate

[Rob_Mac]

Richy

Just called you.

I put VAT onto my domestic round because I had gone over the threshold, I swallowed the 17.5% and got it back by increasing customers, levelling myself with what I originally was earning before the increase.

It doesn't have to be a problem but it may affect domestic customers, don't tell them it is included and they will either agree your price or not.

If you do go VAT registered get into the habit of putting it on one side and don't spend it.

If you call me about the other I will give you my thoughts

Rob

[keyser soze]

quoted 800 to do my vat returns per annum  . my only worry is it makes an easy way of earning a living a little more complicated. oh what to do

[Steve Sed]

claim vat back on fuel and general expenses. im thinking of it and talked to accountant about it .

Don't think you can on flat rate.

[Dave Willis]

Richy, is your worker a bit ................. well, challenged in the brain department? Will he stay with you next year? Does he know about this site?

[Dean Taberner]

On the flat rate you cannot claim vat back on purchases under 2k.

You raise the invoice ie £1000 + £200 vat = £1200

You pay the vat man 12% £120 and you pocket £80.

Its especially good on domestics if you're swallowing the vat as you will only be swallowing 12% instead of the 20%.

The first year you also get a 1% discount.

Its all good fun,

Dean.

[lyndy]

Do the vat return your self it's so easy

[keyser soze]

claim vat back on fuel and general expenses. im thinking of it and talked to accountant about it .

Don't think you can on flat rate

 sorry you misunderstood me i don't think you read this right i said you cant claim vat back on fuel and general expenses. bud

[Nameless Drudge]

Your running the business not your accountant,vat is something you never ever want to jump the gun on.Add up your last 13 weeks income and post it on here.Keep track of a rolling 13 weeks(vat quarter) income by dropping off the furthest week away and adding the most recent.When you find you are consistently over the threshold then you can think about whether its worth it.You want a business but don`t want to be on the glass yourself and thats fair enough.Relying on this one man though is quite frankly bloody ridiculous and as there appears to be a decent income from work you already have then now is the time for another employee and that will cut profit which is just the way it is,thats how it works in real life! You might end up with 10 employes and 5 or 6 vans and you wont get near what that guy you have working for you would make for himself if it was his own work.Your going to need every penny this bloke is bringing in to get the business rolling forward and take nothing for yourself.You really ought to do at least a couple of hundred yourself weekly to keep money in your own pocket whilst the employees income feeds the business.If your not going to work then stop spending.
Employee on holiday,sick,injured,£3000 bill for a van repair plus time off the road and the vat man wants his money and you aint got it,income dropped below the threshold but the vat man won`t let you deregister until he has evidence over the next 4 quarters,nice bills from the accountant whilst his time is spent dealing with it all.
   I`d also be a little concerned with the fact your man seems to consistently do £50 an hour inc. travel time and i wouldn`t dismiss a link between this and a fact you have mentioned previously that there seems to be difficulties in getting paid from customers.
  You probably deserve to end up somewhere simply because you are still going but reel in on this vat idea until you have the 13 previous weeks regularly above the threshold,get another guy employed pronto and this will help to remove the fragility that exists with just one man providing everything.
 

[Halfadaylee]

Your running the business not your accountant,vat is something you never ever want to jump the gun on.Add up your last 13 weeks income and post it on here.Keep track of a rolling 13 weeks(vat quarter) income by dropping off the furthest week away and adding the most recent.When you find you are consistently over the threshold then you can think about whether its worth it.You want a business but don`t want to be on the glass yourself and thats fair enough.Relying on this one man though is quite frankly bloody ridiculous and as there appears to be a decent income from work you already have then now is the time for another employee and that will cut profit which is just the way it is,thats how it works in real life! You might end up with 10 employes and 5 or 6 vans and you wont get near what that guy you have working for you would make for himself if it was his own work.Your going to need every penny this bloke is bringing in to get the business rolling forward and take nothing for yourself.You really ought to do at least a couple of hundred yourself weekly to keep money in your own pocket whilst the employees income feeds the business.If your not going to work then stop spending.
Employee on holiday,sick,injured,£3000 bill for a van repair plus time off the road and the vat man wants his money and you aint got it,income dropped below the threshold but the vat man won`t let you deregister until he has evidence over the next 4 quarters,nice bills from the accountant whilst his time is spent dealing with it all.
   I`d also be a little concerned with the fact your man seems to consistently do £50 an hour inc. travel time and i wouldn`t dismiss a link between this and a fact you have mentioned previously that there seems to be difficulties in getting paid from customers.
  You probably deserve to end up somewhere simply because you are still going but reel in on this vat idea until you have the 13 previous weeks regularly above the threshold,get another guy employed pronto and this will help to remove the fragility that exists with just one man providing everything.
 

One of the best posts I have read in a long time, unfortunately it will fall on deaf ears
Arrt

[Londoner]

I fail to see any advantage in going VAT registered. Having been VAT registered myself in the past

[H S and Son]

Your running the business not your accountant,vat is something you never ever want to jump the gun on.Add up your last 13 weeks income and post it on here.Keep track of a rolling 13 weeks(vat quarter) income by dropping off the furthest week away and adding the most recent.When you find you are consistently over the threshold then you can think about whether its worth it.You want a business but don`t want to be on the glass yourself and thats fair enough.Relying on this one man though is quite frankly bloody ridiculous and as there appears to be a decent income from work you already have then now is the time for another employee and that will cut profit which is just the way it is,thats how it works in real life! You might end up with 10 employes and 5 or 6 vans and you wont get near what that guy you have working for you would make for himself if it was his own work.Your going to need every penny this bloke is bringing in to get the business rolling forward and take nothing for yourself.You really ought to do at least a couple of hundred yourself weekly to keep money in your own pocket whilst the employees income feeds the business.If your not going to work then stop spending.
Employee on holiday,sick,injured,£3000 bill for a van repair plus time off the road and the vat man wants his money and you aint got it,income dropped below the threshold but the vat man won`t let you deregister until he has evidence over the next 4 quarters,nice bills from the accountant whilst his time is spent dealing with it all.
   I`d also be a little concerned with the fact your man seems to consistently do £50 an hour inc. travel time and i wouldn`t dismiss a link between this and a fact you have mentioned previously that there seems to be difficulties in getting paid from customers.
  You probably deserve to end up somewhere simply because you are still going but reel in on this vat idea until you have the 13 previous weeks regularly above the threshold,get another guy employed pronto and this will help to remove the fragility that exists with just one man providing everything.
 

One of the best posts I have read in a long time, unfortunately it will fall on deaf ears
Arrt

I felt it to be a highly informative post too. Nice one!

[Helen]

if andy goes out every 30 days doing 300 a day thats 79,000 a year

There isn't 30 working days per month and your guy will be entitled to 5.8 weeks holidays and will be off sick from time to time. Why not take on a part timer to work with him for 2/3 days per week, so that you have cover for the downtime, with the 100 new customers you intend to take on you would be able to absorb them easily with 1.5 people.
VAT - I think you are doing right by registering as you intend to expand and increase your business. My concern is that you don't quite understand what vat is (no offence meant and how it works.
You need to do some examples for yourself before you take the plunge.
a)Add up your overheads for a standard month and calculate how much of this is vat.
b)Then calculate how much vat you would charge customers on a standard month.
Deduct a from b and this is how much per month you have to pay HMRC if on full vat.

[richywilts]

if andy goes out every 30 days doing 300 a day thats 79,000 a year

There isn't 30 working days per month and your guy will be entitled to 5.8 weeks holidays and will be off sick from time to time. Why not take on a part timer to work with him for 2/3 days per week, so that you have cover for the downtime, with the 100 new customers you intend to take on you would be able to absorb them easily with 1.5 people.
VAT - I think you are doing right by registering as you intend to expand and increase your business. My concern is that you don't quite understand what vat is (no offence meant and how it works.
You need to do some examples for yourself before you take the plunge.
a)Add up your overheads for a standard month and calculate how much of this is vat.
b)Then calculate how much vat you would charge customers on a standard month.
Deduct a from b and this is how much per month you have to pay HMRC if on full vat.

sorry helen the comment you highlighted doesnt read right, what i meant was ive arranged my work now as it stands over thirty days if i can average 300 for each day over the year in theory that should bring a predicted turnover of 79000 obv less days where u cant work, xmas time etc me covering andy if he was off on holiday or sick etc

i have prob 20 days out the 30 which are at 300 or over so need to build up a few of the other day

as you know i have overheads so this 79000 wouldnt provide me with a great income with overheads i currently have so only option is to get rid of andy and have a big unit just for me or try and build up for now so andy van continuously goes out cleaning min 300 a day and then build up new rounds for me to go and clean until it begins getting a bit difficult to do paperwork and clean then get a part timer in to cover my shifts

[Small but perfectley formed]

You wil not save money how much do you spend per month that has VAT .
If you cannot increase all your customers by 20%  it will cost you.

[dazmond]

even you yourself have admitted that your  making very little profit.you dont want to actually do any window cleaning and leave it all to one lad(who WILL GET FED UP eventually) and then you want to go VAT registered!!honestly richy i think you need a check up from the neck up!!!

you over complicate this business to a terrifying degree at times!!keep it simple!


best wishes


dazmond