[Smudger]

Well done 8 wky.

That's how it's done, don't worry about Sean k he barely makes it to the tax threshold for income tax 
( I'm so jealous  )

In for a surprise Don't think so....

Darran

[8weekly]

Well done 8 wky.

That's how it's done, don't worry about Sean k he barely makes it to the tax threshold for income tax 
( I'm so jealous  )

In for a surprise Don't think so....

Darran

In that it's only 11% for the first year.

[Smudger]

Don't really follow, your going vat flat rate 11% 

We were 11% before the year end our turnover meant we had to move to 20% bracket, no shock
( well maybe to the nay Sayers on here )

Darran

[8weekly]

Don't really follow, your going vat flat rate 11% 

We were 11% before the year end our turnover meant we had to move to 20% bracket, no shock
( well maybe to the nay Sayers on here )

Darran

If you go onto the fla rate scheme, for a window cleaning business it is 12% but HMRC discount it down to 11% in first year. If you have gone over £230,000 in the first year, that's fantastic.

[Smudger]

Not when you have to sign the cheques it's not 

Darran

[8weekly]

Not when you have to sign the cheques it's not 

Darran

Pay online. 

[8weekly]

Seriously though, where has the growth mostly come from in terms of marketing?  Is it domestic work or commercial?

[trippyboy]

The only way I can avoid vat is being a one man band, if I took on someone else I would be in the vat threshold. Im allready a bit into the higher tax band, which in my opinion is unfair and is levelied too low.
seems the harder you work in this country the more you get shafted.

[Smudger]

Yes totally agree trippy.

The biggest problem with window cleaning is you have no regular stock  or consumables to offset the vat.

Growth has been across the board, but mainly concentrated on commercial works. It's been a big help moving into pressure washing, we get great add on work for schools and housing associations.
Also any works such as pressure washing - soffit fascia guttering are quoted plus vat on domestic stuff.

Darran

[SeanK]

Well done 8 wky.

That's how it's done, don't worry about Sean k he barely makes it to the tax threshold for income tax 
( I'm so jealous  )

In for a surprise Don't think so....

Darran

I asked a simple question but to be honest if a bone head like you can make it there's hope for us all, maybe you should
get the Mrs to have a look at it and give us an answer.

[CleanClear]

seems the harder you work in this country the more you get shafted.

There's no "seems" about it. Thats how its designed, you earn more, you pay more. This is not a hidden fact.

[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%.

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

That's not the question the question is, what happens if the company you charge tries to claim back the 20% but the
VAT man has only received 12%. in other words will the VAT man be out of pocket.
While your at it please explain to Smudger that asking somebody a question does not mean your jealous.

[CleanClear]

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".

That's not the question the question is, what happens if the company you charge tries to claim back the 20% but the
VAT man has only received 12%. in other words will the VAT man be out of pocket.
While your at it please explain to Smudger that asking somebody a question does not mean your jealous.

Its correct what he says about the making 8 or 9 % on a VAT invoice, thats how it works (the flat rate scheme). Its not a gimmick or something, thats how its understood to work via HMRC website advice. The VAT man will be technically out of pocket, but the scheme is designed to make it easier for small buisness who operate on a cash basis to operate within the VAT scheme. Thats why its just simplified and based on a percentage of your turnover.

[Ian Rochester]

We have our window cleaning business on the flat rate scheme (11%) However it's based on total turnover, you can't deduct anything you buy from it. 

It's beneficial for businesses that don't have a lot of vatable expenses, such as window cleaning where you main cost is wages which isn't vat rated.  Our other big costs are the vehicles and fuel, but the 9% saving far offsets not being able to claim van on these.

As for a 2 man band not being able to reach the vat limit is nonsense,  our normal performance targets are £200/man/day and they regularly do a lot more than that.

[8weekly]

We have our window cleaning business on the flat rate scheme (11%) However it's based on total turnover, you can't deduct anything you buy from it. 

It's beneficial for businesses that don't have a lot of vatable expenses, such as window cleaning where you main cost is wages which isn't vat rated.  Our other big costs are the vehicles and fuel, but the 9% saving far offsets not being able to claim van on these.

As for a 2 man band not being able to reach the vat limit is nonsense,  our normal performance targets are £200/man/day and they regularly do a lot more than that.

According  to the HMRC website it should be 12%. I assume it's "any other activity not listed elsewhere". https://www.gov.uk/vat-flat-rate-scheme/how-much-you-pay

[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%.

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

That's not the question the question is, what happens if the company you charge tries to claim back the 20% but the
VAT man has only received 12%. in other words will the VAT man be out of pocket.
While your at it please explain to Smudger that asking somebody a question does not mean your jealous.

Its correct what he says about the making 8 or 9 % on a VAT invoice, thats how it works (the flat rate scheme). Its not a gimmick or something, thats how its understood to work via HMRC website advice. The VAT man will be technically out of pocket, but the scheme is designed to make it easier for small buisness who operate on a cash basis to operate within the VAT scheme. Thats why its just simplified and based on a percentage of your turnover.

Cheers CleanClear, nicely answered.

[Rich Wilts]

The only way I can avoid vat is being a one man band, if I took on someone else I would be in the vat threshold. Im allready a bit into the higher tax band, which in my opinion is unfair and is levelied too low.
seems the harder you work in this country the more you get shafted.

I've just looked. I didn't realise it was as low as it is. 32K bleeding ridiculous!

[SeanK]

The only way I can avoid vat is being a one man band, if I took on someone else I would be in the vat threshold. Im allready a bit into the higher tax band, which in my opinion is unfair and is levelied too low.
seems the harder you work in this country the more you get shafted.

I've just looked. I didn't realise it was as low as it is. 32K bleeding ridiculous!

Its £32k after allowances which makes it just over £42k, still not good though.

[CLEANCARE WC]

The only way I can avoid vat is being a one man band, if I took on someone else I would be in the vat threshold. Im allready a bit into the higher tax band, which in my opinion is unfair and is levelied too low.
seems the harder you work in this country the more you get shafted.

I've just looked. I didn't realise it was as low as it is. 32K bleeding ridiculous!

I think it's actually 42k matt.. that's how I understood it?

[Rich Wilts]

Still too much