[maggie67]

Does it make a difference when submitting a quote. Are there some companies who will not consider using your service if you are not vat registered & if so why not?
I know that if you earn below the threshold (55k?) It is optional.
Any advice would be greatly appreciated!

[martin19842]

hi there,

the VAT is turnover triggered not earning triggered, therefore if your turnover is below the threshold of £58,000 then you are right you do not have to register.

anything over that and its compulsory,  when submitting a quote you are either submitting £xxx.xx plus VAT or £xxx.xx gross value. (not vat registered)

the argument is that if you arent vat REGISTERED  then generally your quote will be cheaper. 
If the company you are quoting isnt VAT registered, and you arent VAT registgered it would make sense for them to deal with you as they cant claim it back, therefore you stand  avery good chance of being cheaper than a vat registered company as the client would have to absorb the vat element, i hope that makes sense.

on the other hand, my other argument is, you will be a small cleaning company if your turnover doesnt exceed the threshold.

we registered on day 1, year one turnover on target to be £150k

regards

martin

[maggie67]

Hi Martin

Thank you! So what if the company who are looking at offering out this contract are vat reg'd and we are not?
 

[martin19842]

hi there,

i have pm'd you, but it means that they will get from you gross value invoices, with no VAT charged.

regards
martin

[Musicman]

If that is the case Maggie whether you are VAT registered or not is irrelevant to them.

All VAT registered businesses either offset the VAT or claim it back.

You need to consider that if you do register you can claim the VAT back on your fuel, chemicals, equipment etc which in turn should make you slightly more competitive to other VAT reg businesses.

If the bulk of your business is to the domestic market and you are not going to achieve turnover of £58,000 you would probably be better placed to remain as you are.

See your accountant.

Musicman

[maggie67]

Hi

Thank you both! Think I will take your advice Musicman & make a trip to my accountant!

More money!!!!!!!!!!!!!!!
Maggie