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derek west

vat registered
« on: August 02, 2009, 01:42:39 pm »
has anyone who's gone vat registered noticed an increase in commercial client's, i'm struggling to land the big jobs and wondering, if i was vat registered it might look more professional to the com client, and i might increase my quote to job ratios.
no doubt i'll be vat registered eventually (well i hope so) but i know i can go vat registered early if i thought it would benefit my chances of com work.

just a thought, i know its hard to answer but your thoughts on this would be appreciated.

derek

Simon Gerrard

  • Posts: 4405
Re: vat registered
« Reply #1 on: August 02, 2009, 01:51:30 pm »
Derek,
I very much doubt that not being vat registered makes any difference at all to a companies buying decision.
Don't forget, if you go vat registered early, that means you have to charge your domestic customers vat too and that will cost you sales for sure, or at least it will put the price up by 15% which will make things tougher in winning over domestic clients. Plus, there's all the extra paperwork, vat inspections (where your books have to be perfect and any mistakes made are subject to interest from the day you made the mistake) and other hassles which are to be avoided until you have no other choice.

Simon

derek west

Re: vat registered
« Reply #2 on: August 02, 2009, 02:12:40 pm »
must admit, i don't fancy all the hassle and accountants expenses, but just wondered if it made a difference converting com clients.
i suppose i just need to drop my price on the biggies if i wanna do em. but if i drop the price then there not really biggies in a money sense, just work wise. so do i really want them, hmmmmm.
sorry, i'm typing out load again.
cheers for the reply, duly noted.
derek

Doctor Carpet (Ret'd)

  • Posts: 2024
Re: vat registered
« Reply #3 on: August 02, 2009, 02:31:13 pm »
Hi Derek

I'm with Simon and I don't think it'll make any difference. And don't forget some commercial businesses aren't vat registered. After all-you're not! Yet!

The only thing I can say is that the longer established you are the more likely you are to get the chance to quote for commercial work and so on the law of averages you will feel that you are picking up more (in terms of numbers, not necessarily percentage) jobs.

The only other observation I can give you is that there may be more commercial enquiries around as like domestics for some it'll be cheaper to clean rather than replace. The good thing is that is you do a good job these clients are likely to stick with cleaning in the future rather than continually changing.

Roger
Diplomacy: the art of letting other people have your way

derek west

Re: vat registered
« Reply #4 on: August 02, 2009, 02:39:47 pm »
i'm okay with the £200 to £500 com jobs, i usually get them, but ive quoted about 5 biggens and got no where with them, trouble is, the bigger the place, the more chance your quoting to the monkey rather than the organ grinder, which is not good for me as i'm good at selling my self. if ya catch my drift. i'll just keep plugging away then, might try a few meet and greets (business clubs), see if i can drum up some business that way.

cheers guys, sounds like vat reg makes no diff.
derek

Len Gribble

  • Posts: 5106
Re: vat registered
« Reply #5 on: August 02, 2009, 02:50:37 pm »
Some companies like you to be vat registered it shows some type of professionalism, never lost a quote because I wasn’t.

Len
Always bear in mind that your own resolution to succeed is more important than any other. (Sidcup Kent)

elliott cleaning

  • Posts: 778
Re: vat registered
« Reply #6 on: August 02, 2009, 03:03:26 pm »
Never found that being VAT registered has any effect on sales.
We quote net of VAT to commercial customers & inclusive on the domestic side. The fact that we perhaps charge 17.5% more, domestically, than a competitor who is not registered has never been an issue. (Fortunate this year to be netting an extra 2.5%)..

Queried a facilities manager of a multi national for whom I have cleaned carpets for a number of years, as to the three most important criterias for opting to use us.   Reply:  1) Quality of work.  2) Reliability.   3) Realistic price.      VAT was totally irrelevant to him - and why shouldn't it be?

Derek,  You set up in recent times.  Mid range T/m plus all the trimmings probably nice new van etc.   Add up all the VAT you paid out HMCE for that & wouldn't it be nice if you had had all that back from them :)
Doing quarterly VAT returns is really a walk in the park.  You have to keep records for your normal accounts, so whats the big deal

derek west

Re: vat registered
« Reply #7 on: August 02, 2009, 03:05:48 pm »
how many years have i got before i lose getting that vat back, anyone know?
derek

elliott cleaning

  • Posts: 778
Re: vat registered
« Reply #8 on: August 02, 2009, 03:08:55 pm »
If your not registered you won't get it back.  Think if you register within a few months of setting up you might have been able to reclaim.
Not sure exact time scale but certainly not that extended.  Ask your accountant

Shaun_Ashmore

  • Posts: 11382
Re: vat registered
« Reply #9 on: August 02, 2009, 04:17:48 pm »
It used to be 3 years but I'm not up to date on that. Regarding not getting the very big jobs may be because of just price, I had a head office of to quote for and before I did quote the person showing me round said that a company from Birmingham had already quoted the job at £300 a day and they would use 2 TM's and get it done on 1 day approx 600 sq metres, I just said if they have any problems with quality to give me a call but I couldn't compete.

Shaun

derek west

Re: vat registered
« Reply #10 on: August 02, 2009, 04:25:32 pm »
i had heard it was 3 years, cheers shaun.
derek

Simon Gerrard

  • Posts: 4405
Re: vat registered
« Reply #11 on: August 02, 2009, 04:35:23 pm »
Derek,
Do you mean if you register now can you claim back vat-able items from before you registered.
If so, almost certainly not.

Simon

Doctor Carpet (Ret'd)

  • Posts: 2024
Re: vat registered
« Reply #12 on: August 02, 2009, 04:53:36 pm »
Simon
Yes you can.
When I joined the flat rate scheme about 2 years ago it was just after I'd bought my Ninja and I was able to claim back the vat even under the flat rate scheme as you can claim back vat for capital items.

Roger
Diplomacy: the art of letting other people have your way

Dave_Lee

  • Posts: 1728
Re: vat registered
« Reply #13 on: August 02, 2009, 05:03:08 pm »
On the flat rate scheme I believe it is two years. When I registered for vat over 25 years ago, the rule then was, you could reclaim the vat on any capital expenditure still in possesion, no matter how long since it was purchased.
Dave.
Dave Lee, Owner of Deepclean Services
Chorley Lancs. Est 1980.
"Pay Cheap -You get Cheap - Pay a little more and get something Better."

Glynn

  • Posts: 1129
Re: vat registered
« Reply #14 on: August 02, 2009, 05:12:03 pm »
No Dave , I'm pretty sure there is a time limit.
Why did you de register ?.
Regards
Glynn

derek west

Re: vat registered
« Reply #15 on: August 02, 2009, 05:27:49 pm »
think i'll ask me accountant ???
derek

elliott cleaning

  • Posts: 778
Re: vat registered
« Reply #16 on: August 02, 2009, 06:05:21 pm »
Take a look at the following:

http://www.hmrc.gov.uk/vat/start/register/purchases-before.htm

You could still be in luck Derek

Ricky M

  • Posts: 852
Re: vat registered
« Reply #17 on: August 02, 2009, 06:05:50 pm »
Derek when you put your quote in for the biggins are you just putting on your paper work: areas to be cleaned , prices , time to complete ? or adding the extra separate bits of paper work that suits like to see?

 
www.ability1975.co.uk
                          www.carpetcleaninguttoxeter.co.uk  
              NCCA !? but why have non of my clients herd of them ??

Len Gribble

  • Posts: 5106
Re: vat registered
« Reply #18 on: August 02, 2009, 06:59:35 pm »
Though no longer not vat reg still ask for a vat receipt, just in case!

Len
Always bear in mind that your own resolution to succeed is more important than any other. (Sidcup Kent)

John Kelly

  • Posts: 4461
Re: vat registered
« Reply #19 on: August 02, 2009, 07:01:55 pm »
You can claim back any vat paid in the 3 years prior to registering. You do have to have the vat reciepts to back it up.