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Malcal

  • Posts: 148
Domestic customers and VAT
« on: November 16, 2006, 07:43:54 am »
Hi all
Will very soon need to register for VAT. Have mostly commercial customers and just a few regular domestics. I don't think I will be able to increase the charge by the 17.5% and keep the customers. There is a competitor close to me who operates seperate commercial and domestic businesses from the same address and same phone number. I am led to believe that they do not charge VAT to the domestics. Is this OK ?.
Regards Malcal
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www.crawleycarpetc

Re: Domestic customers and VAT
« Reply #1 on: November 16, 2006, 09:19:53 am »
No!

He must have a partner that runs the second business, the simplest thing to do is ring the vat office and you will be clearly informed with the right information.

Rob.
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Neil Mc Anulty

  • Posts: 407
Re: Domestic customers and VAT
« Reply #2 on: November 16, 2006, 04:03:23 pm »
The competitor will need a good accontant soon. I got caught by the vat for the same thing. I was selling chemicals to businesses and operating a cleaning service thinking because it was two different businesses that I didnt have to charge vat for the cleaning service.
How wrong was I? Lucky it was caught on early and didnt have to repay more.

Cheers

neil
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Malcal

  • Posts: 148
Re: Domestic customers and VAT
« Reply #3 on: November 16, 2006, 08:27:50 pm »
Rob
I think the 2 businesses are operated by a wife & husband.
Regards Mal
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John Kelly

  • Posts: 4461
Re: Domestic customers and VAT
« Reply #4 on: November 16, 2006, 08:54:55 pm »
As long as one is a limited company you don't have to charge vat providing the turnover isn't above the threshold. Reason is a limited company is a stand alone entity. Even though you may "own" it you are actually only an employee as a director.
If you had 2 soletraderships or partnerships then the combined income is taken into account.
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pdl

  • Posts: 154
Re: Domestic customers and VAT
« Reply #5 on: November 23, 2006, 08:51:53 am »
Contact the VAT Office they will make everything clear as Mud!
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Never ASSUME, to ASSUME makes an ASS out of U and ME              Cannock Staffordshire

Fred Gullan

  • Posts: 88
Re: Domestic customers and VAT
« Reply #6 on: November 23, 2006, 01:40:27 pm »
Operating two buisinesses that are so similar by two people in the same household is a very dodgy area. The clock is ticking for these people. when they go down more business for you and maybee some customers willing to pay the extra 17.5 %
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