[8weekly]

I'm just about to hit the VAT threshold since starting as a limited company and have begun telling customers that their next clean will either include a 20% hit for VAT or bringing the older customers into line with the prices that new customers get. So far I had one old lady that looked very sour on the news in spite of the fact that hers is only rising from £25 to £27 and an old bloke says he'll have to think about it after getting £15 to £18 - the full 20%. I expect to lose some, but the alternative is to pay it myself. 

It's quite a cruel tax really at this level. At an arbitrary and pretty low level it suddenly makes business A look expensive compared to business B.

[Smurf]

I'm just about to hit the VAT threshold since starting as a limited company and have begun telling customers that their next clean will either include a 20% hit for VAT or bringing the older customers into line with the prices that new customers get. So far I had one old lady that looked very sour on the news in spite of the fact that hers is only rising from £25 to £27 and an old bloke says he'll have to think about it after getting £15 to £18 - the full 20%. I expect to lose some, but the alternative is to pay it myself. 

It's quite a cruel tax really at this level. At an arbitrary and pretty low level it suddenly makes business A look expensive compared to business B.

You could always cut the price on certain jobs so to absorb the VAT so to speak if you wanted. Either way you will find restistant from domestic customers having to pay VAT to get their windows cleaned anyway.

Good luck with that 

[Bungle]

Are you a one man band?

[8weekly]

Are you a one man band?

No, two vans. One man in each.

[Matt.]

U will feel it wen u vat reg ........ It's great that u get the vat back on everything but it's a killer every 3 months wen u got to pay it.
If u don't add it on and absorb it u will feel a massive hit on wot ur used to

[Smurf]

Problem solved as just franchise the second van out 

[kempy]

Nightmare is Vat , but it means your doing well .
I'm no where near that threshold and I think I would always stay beneath it if I ever got close .
But I am a long way short of earning VAT Threshold , so no worries

[8weekly]

U will feel it wen u vat reg ........ It's great that u get the vat back on everything but it's a killer every 3 months wen u got to pay it.
If u don't add it on and absorb it u will feel a massive hit on wot ur used to

I know. It's a scary thought. It will be the flat rate scheme and new prices have it priced in, but it's not going to be nice. I will get the vat back on the new van at least. 

[Smurf]

U will feel it wen u vat reg ........ It's great that u get the vat back on everything but it's a killer every 3 months wen u got to pay it.
If u don't add it on and absorb it u will feel a massive hit on wot ur used to

I know. It's a scary thought. It will be the flat rate scheme and new prices have it priced in, but it's not going to be nice. I will get the vat back on the new van at least. 

So how come you got to the threashold with only two of you working?
Does most of you turnover come from large commercial contracts then?

[8weekly]

U will feel it wen u vat reg ........ It's great that u get the vat back on everything but it's a killer every 3 months wen u got to pay it.
If u don't add it on and absorb it u will feel a massive hit on wot ur used to

I know. It's a scary thought. It will be the flat rate scheme and new prices have it priced in, but it's not going to be nice. I will get the vat back on the new van at least. 

So how come you got to the threashold with only two of you working?
Does most of you turnover come from large commercial contracts then?

It's only £854 a man per week over 48 weeks. It's really not that hard. According to my sums anyway.

[Smurf]

U will feel it wen u vat reg ........ It's great that u get the vat back on everything but it's a killer every 3 months wen u got to pay it.
If u don't add it on and absorb it u will feel a massive hit on wot ur used to

I know. It's a scary thought. It will be the flat rate scheme and new prices have it priced in, but it's not going to be nice. I will get the vat back on the new van at least. 

So how come you got to the threashold with only two of you working?
Does most of you turnover come from large commercial contracts then?

It's only £854 a man per week over 48 weeks. It's really not that hard. According to my sums anyway.

Best you speak with your accountant for advice

[8weekly]

U will feel it wen u vat reg ........ It's great that u get the vat back on everything but it's a killer every 3 months wen u got to pay it.
If u don't add it on and absorb it u will feel a massive hit on wot ur used to

I know. It's a scary thought. It will be the flat rate scheme and new prices have it priced in, but it's not going to be nice. I will get the vat back on the new van at least. 

So how come you got to the threashold with only two of you working?
Does most of you turnover come from large commercial contracts then?

It's only £854 a man per week over 48 weeks. It's really not that hard. According to my sums anyway.

Best you speak with your accountant for advice

What kind of advice?

[Tom-01]

Problem solved as just franchise the second van out 

Exactly

[Tom-01]

I'm just about to hit the VAT threshold since starting as a limited company and have begun telling customers that their next clean will either include a 20% hit for VAT or bringing the older customers into line with the prices that new customers get. So far I had one old lady that looked very sour on the news in spite of the fact that hers is only rising from £25 to £27 and an old bloke says he'll have to think about it after getting £15 to £18 - the full 20%. I expect to lose some, but the alternative is to pay it myself. 

It's quite a cruel tax really at this level. At an arbitrary and pretty low level it suddenly makes business A look expensive compared to business B.

I agree. Its like being penalised for doing well and providing work for other people. I spoke to an accountant and he can't believe the VAT limit is under £100k.

[Johnny B]

I'm just about to hit the VAT threshold since starting as a limited company and have begun telling customers that their next clean will either include a 20% hit for VAT or bringing the older customers into line with the prices that new customers get. So far I had one old lady that looked very sour on the news in spite of the fact that hers is only rising from £25 to £27 and an old bloke says he'll have to think about it after getting £15 to £18 - the full 20%. I expect to lose some, but the alternative is to pay it myself. 

It's quite a cruel tax really at this level. At an arbitrary and pretty low level it suddenly makes business A look expensive compared to business B.

I agree. Its like being penalised for doing well and providing work for other people. I spoke to an accountant and he can't believe the VAT limit is under £100k.

Here in Ireland the VAT threshold is 37500 euros.

John

[NWH]

I don't know why you just didn't franchise some out blimey think man thiiiiiink,lol

[jk999]

Just because your going into vat threshold  you can't make your customer s pay your vat, if you do that then your gonna be back under vat threshold because you will lose so many customers by increasing your prices, 

[NWH]

You can knock the VAT off but it defeats the object in the first placeyour taking a pay cut to go VAT. It all depends on the work you do some people won't bat an eyelid some will get someone else. When some people know your VAT registered there reaction might be he doesn't need little old me he must have bigger fish to fry,some will be impressed your doing well. Good idea to sound them out first you'll know 18 months before you go over.

[8weekly]

Just because your going into vat threshold  you can't make your customer s pay your vat, if you do that then your gonna be back under vat threshold because you will lose so many customers by increasing your prices,

It's not my VAT. The idea of VAT is that the customer pays it, not the service provider.

[Mike #1]

Telling your custys their prices are going up 20% because you're now vat registered is daft , I get you been honest and having to increase prices but they will think you're earning far to much money for a windy and are surely more likely to dump you .

I would be selling some work off surely better to stay slightly under than the headache and cost of been over .