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MATT BATEMAN (OWC)

  • Posts: 1821
Re: VAT on residential window cleaning
« Reply #20 on: April 05, 2013, 08:43:34 am »
Graham the difficult thing is that window cleaning requires very little out put.

If you're AT registered you'll be employing, thats a large output in anyones books.

George Gardner

  • Posts: 220
Re: VAT on residential window cleaning
« Reply #21 on: April 05, 2013, 01:19:36 pm »
Lee like someone half mentioned start another company. Yes I know two sets of accounts etc but could save you time and money.

"Lee B cleaning"
"Lees window cleaning"

For example  ;D even when you reach the threshold on that second company start another even, then amalgamate the lot and then by then you should have a sizeable enough company to be able to absorb the VAT. Or have a "group".

Just a thought

sam125

  • Posts: 32
Re: VAT on residential window cleaning
« Reply #22 on: April 05, 2013, 01:28:02 pm »
Sure that would work. Vat man wouldnt have seen such shrewdness before.  :)

George P

  • Posts: 1304
Re: VAT on residential window cleaning
« Reply #23 on: April 05, 2013, 08:23:07 pm »
Sure that would work. Vat man wouldnt have seen such shrewdness before.  :)


;D ;D

Lee Burbidge

  • Posts: 2287
Re: VAT on residential window cleaning
« Reply #24 on: April 06, 2013, 06:46:20 am »
Lee like someone half mentioned start another company. Yes I know two sets of accounts etc but could save you time and money.

"Lee B cleaning"
"Lees window cleaning"

For example  ;D even when you reach the threshold on that second company start another even, then amalgamate the lot and then by then you should have a sizeable enough company to be able to absorb the VAT. Or have a "group".

Just a thought

Now there is an idea :)

formb

Re: VAT on residential window cleaning
« Reply #25 on: April 06, 2013, 12:58:20 pm »
Quote from: Lee Burbidge
Quote from: George Gardner
Lee like someone half mentioned start another company. Yes I know two sets of accounts etc but could save you time and money.

"Lee B cleaning"
"Lees window cleaning"

For example  ;D even when you reach the threshold on that second company start another even, then amalgamate the lot and then by then you should have a sizeable enough company to be able to absorb the VAT. Or have a "group".

Just a thought

Now there is an idea :)

Yes, there is an idea. A very bad one.

Quote from: HMRC website

Do not avoid registering for VAT by artificially separating business activities

If you run more than one business, the sales in all those businesses must normally be added together to determine whether or not you must register for VAT.
However, if you are involved in the running of several separate legal entities, you may not need to combine the sales of those businesses to find whether you need to be VAT-registered.

If HMRC decides that you have artificially separated one business into smaller parts to avoid registering for VAT, it can decide that the entire business is a single taxable person and therefore must be registered for VAT. See the description of 'taxable person' in the section in this guide on who can and can't register for VAT.

Situations that HMRC may consider a single taxable person for VAT purposes include:

  • Separate entities selling to registered and unregistered customers. The VAT-registered entity sells only to VAT-registered customers, and the entity not registered for VAT sells to customers who are not registered for VAT.

  • The same equipment or premises being used by different entities on a regular basis. The premises and/or equipment are owned by one of the parties, who charges rent to the others. This situation may occur in businesses such as launderettes and takeaway food operations.

  • Splitting up what is usually a single sale. This is common in industries such as the bed and breakfast trade, where one business supplies the bed and another the breakfast.

If you deliberately avoid registering for VAT, you may be liable to a penalty. For serious offences, the matter will be investigated and you may be prosecuted.


Dani J

  • Posts: 421
Re: VAT on residential window cleaning
« Reply #26 on: April 06, 2013, 05:26:35 pm »
Quote from: Lee Burbidge
Quote from: George Gardner
Lee like someone half mentioned start another company. Yes I know two sets of accounts etc but could save you time and money.

"Lee B cleaning"
"Lees window cleaning"

For example  ;D even when you reach the threshold on that second company start another even, then amalgamate the lot and then by then you should have a sizeable enough company to be able to absorb the VAT. Or have a "group".

Just a thought

Now there is an idea :)

Yes, there is an idea. A very bad one.

Quote from: HMRC website

Do not avoid registering for VAT by artificially separating business activities

If you run more than one business, the sales in all those businesses must normally be added together to determine whether or not you must register for VAT.
However, if you are involved in the running of several separate legal entities, you may not need to combine the sales of those businesses to find whether you need to be VAT-registered.

If HMRC decides that you have artificially separated one business into smaller parts to avoid registering for VAT, it can decide that the entire business is a single taxable person and therefore must be registered for VAT. See the description of 'taxable person' in the section in this guide on who can and can't register for VAT.

Situations that HMRC may consider a single taxable person for VAT purposes include:

  • Separate entities selling to registered and unregistered customers. The VAT-registered entity sells only to VAT-registered customers, and the entity not registered for VAT sells to customers who are not registered for VAT.

  • The same equipment or premises being used by different entities on a regular basis. The premises and/or equipment are owned by one of the parties, who charges rent to the others. This situation may occur in businesses such as launderettes and takeaway food operations.

  • Splitting up what is usually a single sale. This is common in industries such as the bed and breakfast trade, where one business supplies the bed and another the breakfast.

If you deliberately avoid registering for VAT, you may be liable to a penalty. For serious offences, the matter will be investigated and you may be prosecuted.


Not if you have a franchisee  ;)
Ask Ian Lancaster  :)
He has around 9 or 10 franchisee and still don't pay V.A.T.  :)

formb

Re: VAT on residential window cleaning
« Reply #27 on: April 06, 2013, 05:36:30 pm »
Franchises are something altogether different.

Bens windows

  • Posts: 88
Re: VAT on residential window cleaning
« Reply #28 on: April 06, 2013, 09:36:33 pm »
Rather than telling the residential customer you are charging 20% extra for vat ,could you not charge them maybe 10% more( if they haven't already been hiked up in the past few years )as just a price rise ? Your lose 10% but saves losing customers,im not really sure how the vat works but they don't need to know that they are paying vat do they?

KS Cleaning

  • Posts: 4128
Re: VAT on residential window cleaning
« Reply #29 on: April 07, 2013, 12:01:13 am »
Lee
I have just gone vat registered (8/3/13) and so far it's been ok for me what I have done is put all commercial up by 20% and then gauged my domestics some have gone up 20% and some 10% but because I can claim vat back I don't mind loosing out on the odd domestic

Another plus is you can claim vat back on all equipment and vehicals spent over the last 4 years
Are you sure about this? Surely if something was bought 4 years ago you would have claimed it as a business expense to reduce your taxable income for that financial year?

david washbrook

  • Posts: 924
Re: VAT on residential window cleaning
« Reply #30 on: April 07, 2013, 11:22:45 am »
Yes I'm very sure but its only on vehicals and equipment you still have and still have the recites for