[Simon Carter]

For those of you who are VAT registered, do you simply avoid low end domestic?. If not, how do you work it?. Most of your competition will not be registered, which presumably makes you 17.5% more expensive before you start. Are the £10.00 jobs, or even less, simply not worth the hassle?.
Is there a way to build a business in residential with employed operatives?

[Simon Carter]

Just answering my own post to get it back to the top. Come on .....  someone must have some thoughts

[Clear Vision]

If you vat registered and you go to quote a job and you think its worth £10 per clean could you just not tell them it will be £11inc vodka and tonic? That will cover the vat?

The only way to build a business is to get some retired person to go out and canvas for you. When you build up too much work, employ someone part time.

I don't know? Don't even know what I just typed in

[Clive McDonald]

Yes Clear vision not bad, you make better sence when you're confused.

The problem with this thread is that i presupposes success (turnover 60k plus) but then confounds it by whining about Vat. If you are clever enough to do the first part the second part won't be a problem either.

Looking at it the other way, the onwards and upwards boy is pretty much beaten before he starts.

This Forum does give answers, but not allways what people want to hear. The answer to this is hard work and lots of it, and mostly done by yourself.

[Steve Lowe]

Hi Simon
             I am Vat registered and do domestic work. I personally have a minimum charge of £20 inclusive of vat but have plenty comming in

Steve

[Simon Carter]

Hi Steve,
If you charge a minimum of £20.00 & include VAT, that suggests you cherry pick your clients. I have well over 2000, but I try very hard not to lose any potential new one for any reason. I have to stay price competitive therefore with the one man band.
I am not VAT registered, as I sub the work, but I am thinking about employing. My current structure works, but I don't have the control that I would like.
In this part of the world, I don't know anyone who has the answer. Most businesses as they grow it seems to me eventually lose interest in the low end domestic. I'm looking for a way to build my business focusing on it.

[Steve Lowe]

Hi Simon
I charge that for an average 3 bed semi but i am based in the Surrey area. I think its one of those things that is just part of growing your business. You get to a point where you eitheir register or stifle your business! Looking at it from a positive side you will then be able to claim back any vat you pay and it does give you a bit more credibility with your commercial clients.

Steve

[choice.clean]

nothing stopping you setting up 2 companies make one ltd and vat registered if you like, or could make both non vat and keep them below vat threshold. i phoned vat man regarding this and was told we know it goes on but we can't do much about it. some on this forum would disagree with this view but my accountant and others don't and i know where i would prefer the 17.5 % to go :

[Ian Rochester]

It's always a dilemma to the legitimate business, firstly when you just start out legitimatly you are competing against someone who is only after a bit of beer money and is willing to take £2.00 per house, then as you get a good reputation and grow your business, you get to the point where you need to be VAT registered and you have to stick another 17.5% on your prices.

We do houses for £8.00 and are competing against people who are pricing them for £3.00.........but we are still growing at a good rate! 

If you talk to your customers, or send them a letter explaining your situation regarding VAT, most people will accept the price rise, it shows they are hopefully being serviced by a reputable large(ish) company, that is not going to just vanish tomorrow

[Lakes and Pennine]

used to be vat registered in a previous incarnation, and I must admit I hated it. Yes you can claim vat back...but how much gear are you buying week on week?

The chance to be in that possition again would be good financialy, but its one more body to come and investigate you, and I found them worce to deal with than Inland rev. I also hated giving them 3k a quater.

Just an idea, if your married can the missus claim half the work and trade as 2 sole traders?

[eddie d]

i think you can put it off ,but sooner or later if your buisness is growing then you will have to pay .
i dont think you necessarily have to go high end or cherry pick .have a minimum of 10 plus vat and rounfd it off to 12 .

[Trevor Knight]

We are VAT registered and yes I agree, it does make some jobs costly.

However, like it has been said on here, if you want to grow you will have to accept that one day you will have to do it!

I will be honest, we do look for properties that can sustain the VAT element, but you will also surprise yourself when talking to a customer that you have to add VAT to a £10 house how many of them in a bizarre kind of way are happy about it. I think in their minds it gives them that feeling that you are established and professional and are here to stay. Of course, we all know that it doesn't mean this in any way at all but just that some of us give the government even more of our hard earned cash.

Isn't it funny how people judge you on the silliest of things!

[Londoner]

Just wanted to say its nice to see Steve Lowe back posting on the forum. Steve used to be the moderator on this forum back in the old days when the main topic was which rubber is best and where could you get the best deal on an A frame ladder. How things have changed.