[benny donnelly]

Just interested to hear what other did or will do once they hit the vat limit with there turnover, do you plan on staying under it to keep things simple and avoid having to charge it or would you take the hit and take the price out of the cleaning price or maybe even add it on?
Would you then increase turnover to get the most out of the hassle with the vat etc?

[PoleKing]

I was projected to go quite a bit over it.
So I sold some work.
I don't want to be VAT registered.
I sold what appears to be exactly the right amount as I'm just under the limit by the end of this week. And I'm off next week

[8weekly]

I was projected to go quite a bit over it.
So I sold some work.
I don't want to be VAT registered.
I sold what appears to be exactly the right amount as I'm just under the limit by the end of this week. And I'm off next week

It's any rolling 12 month period. Not just April - March.

[Smudger]

8 - correct.

Going vat is a big step, and can hurt IMO vat threshold is far too low. There is the flat flat rate, so you can charge 20% but pay 11% but can't claim vat back on items brought under 2k.  On the run up to vat we sourced more commercial work to help balance out domestic customers, we also put our prices up 10% on domestic work just before vat reg, it all helps but it's a nasty bill to pay.

Darran

[PoleKing]

I was projected to go quite a bit over it.
So I sold some work.
I don't want to be VAT registered.
I sold what appears to be exactly the right amount as I'm just under the limit by the end of this week. And I'm off next week

It's any rolling 12 month period. Not just April - March.

I know. I'm fine, thanks though.

Also, if one was to creep over 'accidently' they're not forced to register.
One can argue that it was an accident and won't happen again (if that's the way they choose to go)

[SeanK]

You just take the hit and get on with it, if you want to build a large business then you don't have a choice.

[PoleKing]

You just take the hit and get on with it, if you want to build a large business then you don't have a choice.

Depends how you define 'large'.

And if t/o was £100k and £50k profit compared to £79k t/o and £50k profit i know which i'd choose.

[8weekly]

You just take the hit and get on with it, if you want to build a large business then you don't have a choice.

Depends how you define 'large'.

And if t/o was £100k and £50k profit compared to £79k t/o and £50k profit i know which i'd choose.

I think it's not even that straightforward. If turnover was £100k, VAT registered, 50k profit, BUT someone else did the work, I'd go for that option. 

[PoleKing]

You just take the hit and get on with it, if you want to build a large business then you don't have a choice.

Depends how you define 'large'.

And if t/o was £100k and £50k profit compared to £79k t/o and £50k profit i know which i'd choose.

I think it's not even that straightforward. If turnover was £100k, VAT registered, 50k profit, BUT someone else did the work, I'd go for that option. 

Having had employees and subbies...nope. I'd much rather earn it myself.
Had an issue only yesterday with a lad who i thought was safe.

[8weekly]

You just take the hit and get on with it, if you want to build a large business then you don't have a choice.

Depends how you define 'large'.

And if t/o was £100k and £50k profit compared to £79k t/o and £50k profit i know which i'd choose.

I think it's not even that straightforward. If turnover was £100k, VAT registered, 50k profit, BUT someone else did the work, I'd go for that option. 

Having had employees and subbies...nope. I'd much rather earn it myself.
Had an issue only yesterday with a lad who i thought was safe.

You're young and strong. Wait until you get into your 50s. You may already have a plan, but I didn't.

[PoleKing]

I have a very good plan.
Far superior to yours.




I'll be dead.

[Frankybadboy]

I'll be dead.

we can only wish

[Dave Willis]

I was projected to go quite a bit over it.
So I sold some work.
I don't want to be VAT registered.
I sold what appears to be exactly the right amount as I'm just under the limit by the end of this week. And I'm off next week

If you sold some work surely that got added to your income for the year
Did you sell it dirt cheap?

[PoleKing]

I'll be dead.

we can only wish

Not yet, Franny.
Keep on running.

[PoleKing]

I was projected to go quite a bit over it.
So I sold some work.
I don't want to be VAT registered.
I sold what appears to be exactly the right amount as I'm just under the limit by the end of this week. And I'm off next week

If you sold some work surely that got added to your income for the year
Did you sell it dirt cheap?

No, got 4x. (Cheapish)
No, like I say, it was very close but worked out almost to the £.
I sold it in September.  those 2 months 'lost' money, were the difference.

[benny donnelly]

Just have to suck it up and deal with it, I have just gained a fair sized regular commercial job that will bring me a good bit over the vat limit so good as time as any to increase price to cover the vat

[slap bash]

I would avoid going vat its too much work as you become a tax collector for the state and you do the admin at your cost. No ways.  Been there done that its no big deal. So even ware it as a badge.  I would sell of dross and stay within the number.

[Perfect Windows]

I would avoid going vat its too much work as you become a tax collector for the state and you do the admin at your cost. No ways.  Been there done that its no big deal. So even ware it as a badge.  I would sell of dross and stay within the number.

On the flat rate the admin goes like this:  [Thinks] What was our turnover in the quarter?  Hmm, let's print that out from Aworka/CP.  What's 12% of that?  OK, I'll write that in the box.  Now, where's the stamp?

Vin

[Stoots]

Spose it depends how big you want to take your business

if you want to limit yourself to turning over 80k then dont register

if you want to build infinetly then take the hit, and have all the hassles of employing and going ltd etc

Thats how it works for anything in life, if you want something theres always obstacles to overcome, just like starting out self employed, if you want to get out of that 9-5 job you have to sacrifice a lot to get where you want to go.

If you dont register for VAT then remember your maximum income can only ever be the VAT limit, if you go through the VAT threshold your income is only limited by your imagination.  Up to you if the sacrifice is worth it on a personal level.

[Richard Stevenson]

Set up two separate company's , one industrial work vat reg, one domestic non vat . Simple!