[Smurf]

If you are happy to delibratly stay below then fair enough as I'm not arguing that point at all. However in doing so you could end up turning a lot of profitable work  down for they sake of not wanting to be vat registered which seems a bit crazy to me.

[SeanK]

If you are happy to delibratly stay below then fair enough as I'm not arguing that point at all. However in doing so you could end up turning a lot of profitable work  down for they sake of not wanting to be vat registered which seems a bit crazy to me.

Your just agreeing with what has already been said. but there's nothing crazy about it as going VAT reg. is major step for anybody and one that needs serious consideration, you don't do it for the sake of turning down a grand's worth of work.

[Smurf]

If you are happy to delibratly stay below then fair enough as I'm not arguing that point at all. However in doing so you could end up turning a lot of profitable work  down for they sake of not wanting to be vat registered which seems a bit crazy to me.

Your just agreeing with what has already been said. but there's nothing crazy about it as going VAT reg. is major step for anybody and one that needs serious consideration, you don't do it for the sake of turning down a grand's worth of work.

Some firms on here I'm sure can turnover a lot more than that in a day so for them being vat regestered is no hassle at all?

Anyway all this talk about work is making me fell very tired so I'm off for me afternoon nap now as old people do 

[CleanClear]

I am not playing with words QL I am only pointing out that going VAT reg. has a cost to your business and upping
your price doesn't remove that cost.
Yes 8 weekly's price increase will take the sting out of it as he will be no worse off financially but the cost will still be there.
Doesn't matter what he charges he will now have to make between 11% and 20% more just to break even and that extra can
only be justified by expanding, put it this way you would be a very foolish person to go VAT reg. if you goal was to reach £100k.

You don't really have any choice in the matter do you seank irrespective of how much turnover you want once you reach the vat threshold surely?

How do you not have a choice ? once you reach the VAT threshold your choice is to keep expanding or stay below it, now if
your plan is to only expand by 20% then your not going to be any better off so going VAT reg. would be a bit silly, that's why
its something not to be taken lightly.
There is a point where it becomes worthwhile but I'm sure somebody on here who has already gone down that road would be
better qualified to say what it is.

You're correct.
Whats VAT threshold now , 82K ? Lets see how it looks..........

Turnover 80K = no vat.

Turnover 100k, so VAT payable even at flat rate scheme of 11% = £11k

11k from 100k = 89k.

The extra 20k in sales ,above the VAT threshold has resulted in a net sales of 9k more.

How much does it cost to clean the extra 20k ? Well 20K over the year equates to approx £400 per week. Using the OP's example of £850 a week cleaned per man, that means its a half week to clean the extra? Half a weeks wage over the year must be 9k ?

Or maybe the OP is going to absorb the extra 20K into the current operation? If thats the case, assuming the workload is spread equally between the two of them the OP would pay an extra 4.5K to his employee and generate himself an extra 4.5k for working harder?

[ascjim]

I've only got to pay 12% VAT 

[S.A.J]

8 weekly

We went VAT 4 years ago and it was the best thing I've ever done!!

No more worrying about going over the threshold 

You don't have to tell your domestics you are VAT or they are paying VAT as long as you display a vat number on all paper work .

We still clean a lot of domestic and always price everything with VAT but we are now mainly commercial and being VAT registered opened a few more big doors for us!! (Don't see what being vat Reg has to do with it but it helped  )

We did not bother with the flat rate as I wanted to claim every penny back from the tax man 

As long as you don't spend your VAT money (open a separate account and keep it in there) you'll be fine

[NWH]

Lot more to locking the van up and going home when your VAT registered,thought about it and went down another route for now,I can see the appeal some firms only want to deal with VAT registered companies and if you have lots of commercial work and all of a sudden a good couple of jobs Come in its difficult to avoid. There not silly these TAX people,they know you being self employed it's easy to hit the VAT limit once the work starts coming in especially if there's a a couple of you like I say full time it's almost harder work trying to avoid it.

[Smudger]

Not read all the posts so may have been suggested already,

We went vat 18 months ago, this doesn't just come out of the blue, (although it's way too low a limit) we increased prices before hitting the vat by 15% under general price increase we do in April ( covers  the flat vat ) we also looked for and got a lot more commercial work that we could charge 20% vat, while paying 11% this helped greatly before having to go to the full 20%

Remember at 11% you can only claim vat on orders/items over 2k spend but you will be able to back date things like vans

Darran

[Frankybadboy]

so back to tthe question how many you lost 

[NWH]

I think you can roughly tell if you'll lose any or many by your customer base,a lot of domestics I've got when I first quoted they said but there's VAT in that yeah they were expecting it.

[8weekly]

so back to tthe question how many you lost 

None so far, but early days yet!

[8weekly]

Not read all the posts so may have been suggested already,

We went vat 18 months ago, this doesn't just come out of the blue, (although it's way too low a limit) we increased prices before hitting the vat by 15% under general price increase we do in April ( covers  the flat vat ) we also looked for and got a lot more commercial work that we could charge 20% vat, while paying 11% this helped greatly before having to go to the full 20%

Remember at 11% you can only claim vat on orders/items over 2k spend but you will be able to back date things like vans

Darran

I thought it was 12%?

[steve rix]

Get custys to pay cash, prob solved!!

[Tom-01]

Not read all the posts so may have been suggested already,

We went vat 18 months ago, this doesn't just come out of the blue, (although it's way too low a limit) we increased prices before hitting the vat by 15% under general price increase we do in April ( covers  the flat vat ) we also looked for and got a lot more commercial work that we could charge 20% vat, while paying 11% this helped greatly before having to go to the full 20%

Remember at 11% you can only claim vat on orders/items over 2k spend but you will be able to back date things like vans

Darran

I thought it was 12%?

First year is 11%, then 12% thereafter

[8weekly]

Not read all the posts so may have been suggested already,

We went vat 18 months ago, this doesn't just come out of the blue, (although it's way too low a limit) we increased prices before hitting the vat by 15% under general price increase we do in April ( covers  the flat vat ) we also looked for and got a lot more commercial work that we could charge 20% vat, while paying 11% this helped greatly before having to go to the full 20%

Remember at 11% you can only claim vat on orders/items over 2k spend but you will be able to back date things like vans

Darran

I thought it was 12%?

First year is 11%, then 12% thereafter

Darran's in for a surprise then. 

[Richard Stevenson]

Get yourself as much commercial work as possible,  you can make 9% ON  each contact  ( flat rate ), pass this on to your domestic customers

[Smurf]

Get yourself as much commercial work as possible,  you can make 9% ON  each contact  ( flat rate ), pass this on to your domestic customers

Is that legal

[8weekly]

Get yourself as much commercial work as possible,  you can make 9% ON  each contact  ( flat rate ), pass this on to your domestic customers

Is that legal

It isn't like it sounds. He just means use commercial work to offset the impact of not passing the VAT to domestic customers.

[SeanK]

Get yourself as much commercial work as possible,  you can make 9% ON  each contact  ( flat rate ), pass this on to your domestic customers

Is that legal

It isn't like it sounds. He just means use commercial work to offset the impact of not passing the VAT to domestic customers.

But how would it work, your paying the VAT man 11% and the commercial company will be claiming back 20%.

[8weekly]

Get yourself as much commercial work as possible,  you can make 9% ON  each contact  ( flat rate ), pass this on to your domestic customers

Is that legal

It isn't like it sounds. He just means use commercial work to offset the impact of not passing the VAT to domestic customers.

But how would it work, your paying the VAT man 11% and the commercial company will be claiming back 20%.

You'll be charging 20%, but if you're on the flat rate scheme you pay 12% and the 8% is "profit".