[Smurf]

You can't have a VAT number on the bill or charge extra for vat if you're not registered   

It's a bit like what came first the chicken or the egg 

[8weekly]

You have to be registered for VAT either voluntary or compulsory before you can start charging customers VAT surely? 

Not technically I don't think? For example if you have a £20 house, you would just say the price is £24, then that £4 you pay your VAT bill with. Maybe have your VAT number on the bill.

Yes you do.  You can't charge VAT if you aren't VAT registered.

[8weekly]

but lost 75k aswell 

Lost some, but 55 is the net gain.

Is that inclusive of VAT or without as surely you must be compulsory vat registered by now? 

Without. Not VAT reg yet. It's a new company from 1st April & we've not hit the threshold this year. In truth, VAT will have to be absorbed for a lot of that work when we hit it. 

Hi mate

Didn't you say you were pricing plus VAT for all new stuff? I may have that wrong.

I went way over the threshold so will have a bill to pay, but from November structuring things differently business wise. How many leaflets have you put out since January?

Thanks
Tom

No, that would be illegal I'm pretty sure. What I said (I think) was that new prices had VAT factored in but that I would add the VAT to many, many older customers.

I'm not sure on the number delivered as I order 10,000 at a time and then reorder when I run out. I haven't kept track to be honest. But approximately 400 hours spent leafleting.

Ah got ya. Of course, you're not VAT reg yet so can't plus VAT until you are. Or like you say factor it into the price.

400 hours thats good. Do you field all the calls/enquiries yourself? Who do you use for the leafleting? Do you have all your prices on the leaflet?

Thanks
Tom

My wife is a co director and employed full time and does all the leafleting. I take all the calls whilst working which at times is a strain. There are two reasons why I take the calls. The main reason is I don't trust my co director to answer her phone!! 

[sunshine windows]

Correct me if I'm wrong, but I think what 8 weekly has done is price the jobs ready to swallow the hit of VAT when it comes.

So at the minute he'd be getting the whole £24 for the job, not being VAT registered and not claiming to the customer that the price includes VAT. It's just his price for the job.

When he does go VAT registered the job remains the same price but the VAT man gets his £4 from it and he can cleverly tell his customers he's going VAT registered but not passing on the cost of this.

[Rich Wilts]

Mr 8 weekly are you looking to buy any work?

[Tom-01]

Correct me if I'm wrong, but I think what 8 weekly has done is price the jobs ready to swallow the hit of VAT when it comes.

So at the minute he'd be getting the whole £24 for the job, not being VAT registered and not claiming to the customer that the price includes VAT. It's just his price for the job.

When he does go VAT registered the job remains the same price but the VAT man gets his £4 from it and he can cleverly tell his customers he's going VAT registered but not passing on the cost of this.

Yep thats what I thought, I mis-read 8weekly's earlier post. Basically once you are over the threshold you have to pay it. Whether you tell customers directly or not is another matter. Are you going flat rate?

[Tom-01]

Mr 8 weekly are you looking to buy any work?

Quarter-Light are you selling? I'm looking to buy, but only big bungalows

[8weekly]

Mr 8 weekly are you looking to buy any work?

Hmmm. I'd be inclined to say no, but I wouldn't rule it out. Where is it? I tend to just leaflet drop where I'm looking.  I might be interested in your best stuff though. 

[Rich Wilts]

My best aint up for grabs. 

Its generally stuff round here. £40.00/hr, 4 bedders. Usual boring run of the mill stuff.

[Shane sharples]

Rust Never Sleeps. Great album.

But your post proves that unless you are continually generating new work, at best you will be standing still. Incidentally, since January we have added £55,000 annual turnover in regular 4 & 8 weekly jobs.  Not bad eh? 

Well thats peed over my measley 14000 grand since jan

But I doubt you have your wife spending two hours a day every day dropping leaflets. Not that they work mind. 

What's your leaflet design like ? I had 2000 crap ones made when I first started and still got them , any chance of a sneak peak at yours ?

[Ian Rochester]

You can price the work as you see fit, if you want to put a provision in when you price up work on the expectation that  you are going vat registered at a later date then there is no problem with that, it saves you then going back to the customer and telling them the price has gone up by 20% due to VAT.  In the meantime you are making 20% more on those cleans.

However, you cannot show on an invoice that there is a 20% surcharge for VAT if you are not vat registered and your VAT number needs to be on all invoices, in most peoples cases this will only apply when working with commercial customers who are themselves VAT registered and need to claim back their vat expenses.

Also once you go VAT registered you can claim back any VAT costs that you have incurred in the past 3 years for any capital items that you have purchased, ie vans, systems, etc

[8weekly]

My best aint up for grabs. 

Its generally stuff round here. £40.00/hr, 4 bedders. Usual boring run of the mill stuff.

I've been tempted in the past and not done it. I reckon if it was a few well priced jobs in areas I was targeting I'd be tempted. Eventually I think I will go as far as Basingstoke, Andover and Reading but at the moment I'm not going further than Kingsclere, southwards (and not getting much there either).  Thanks for the offer though.

Personally I reckon you should take someone on again.  the stress I'm sure would ease if you quickly took on another one soon after if you can get the work and got a second van out.