[drive surgeon]

hi i had to quote a hospital for gum removal and jet washing but im not vat registered as i dont turn over anywhere near 60k.  they emailed me asking why i did not charge vat on my prices. i just said we currently dont charge vat at present.  but today my friend said it will go against me as they want business's that are vat registered.

cos i have so many domestic customers if i charge vat i will lose them.  but my friend also said i could have a commercial section and a domestic section for my business and that i dont need to earn over 60 grand before starting to charge vat.  is this the way forward for me? 2 business's?

[Robert Parry]

Drive,

You friend is wrong, HM Customs will not let you get away with this unless, you can show that the 2 business's are entirely seperate, bit difficult to do if you are carrying out the work for both domestic and commercial client's.

You pays your money you takes your choice I am afraid, the upside is that a VAT registration could be a bonus with domestic, maybe because it shows that you are a bona fide business, maybe!

Regards,

Rob

[drive surgeon]

well can i apply to be vat registered if i turn over less than 60k?

[mk1]

yes you can.

beaware the vat man waits for no man !!!!!!!!!

[drive surgeon]

think i will lose my domestics if i charge vat. i do more domestic than commercial 

[Griffus]

If you do mostly domestic and very little commercial then I would stay away from VAT unless you have no choice due to revenue.

That said, if you do intend to move into more commercial then VAT gives a better impression.

We are VAT registered and have been since we set up. Our customers are mainly commercial. I have to admit that private customers hate it. The trick is to quote inclusive of VAT and invoice inclusive of VAT. Private customers do not need to see the breakdown of charges. For commercial you will have to show the breakdown.

The fact that you are not VAT registered my not necessarily lose you this job. Have the chat with your contact.

Regards

Ian

p.s. if you do go VAT registered be aware that for the third month of the cycle you will pay VAT before you have been paid by your commercial customers (depending on payment terms).

[BDCS]

I'm not vat registered and its never caused me any problems - I sub for the MOD and big firms such as Lefarge on their motorway work. You get the accounts ask but its only because they think you've forgot the vat. I will stay away from the vat reg as long as I can as I can see only the yax man and my accountant benefitting from registration.

[trevor perry]

I'm not vat registered and its never caused me any problems - I sub for the MOD and big firms such as Lefarge on their motorway work. You get the accounts ask but its only because they think you've forgot the vat. I will stay away from the vat reg as long as I can as I can see only the yax man and my accountant benefitting from registration.

you havnt got a choice once your turnover exceeds £60000 unless you know something the rest of us dont.

[Gilbert Sprous]

p.s. if you do go VAT registered be aware that for the third month of the cycle you will pay VAT before you have been paid by your commercial customers (depending on payment terms).

The way to get around this one is cash accounting, you only pay the VAT on what you receive.  This also helps with bad debt, you do not end up paying the VAT man for invoices that never get paid.

[BDCS]

The current Vat threshold is £67k and if I could do that as a one man band I would be very happy.
Turnover is vanity - profit is sanity - cash is reality - I'm broke

[trevor perry]

The current Vat threshold is £67k and if I could do that as a one man band I would be very happy.
Turnover is vanity - profit is sanity - cash is reality - I'm broke

totally agree with the turnover is vanity - profit is sanity remark, i had looked at your website and thought you where more than a one man band as it is very well presented.

[BDCS]

You made the missus happy - she does the website with two screaning kids helping