Vat

So who's vat registered? I always get jobs on schools , churches due to the fact I'm not but when it comes to normal companies sometimes get them sometimes don't due to vat so what's the benefits as I'd have to raise all my prices by 20%

 

If you raise prices by 20% and customer is vat registered they get it back so price is same as before I'm vat registered and 99% of time it's not a problem what I've learnt is if I give a price to domestic customer of £1000 + vat they say no but if you say £1200 not normaly a prob it's when you say that word vat people don't like but we all pay it every day some people just don't like paying it to trades

 

I've always been vat registered, not lost jobs over it tho

 

Don't agree Matt or have I read your post wrongly??

 

Don't forget you get all vat on fuel, phone bill, meals out, holidays um I mean Xmas bonus basically any vat you pay you get back

 

I've been Vat registered for 30 years, advantages are you can claim back the VAT, on fuel for your van,your tools, materials, and anything that has a VAT element that is used solely for your business. you don't need to raise your prices by 20% you only pay the VAT on profit, so if material costs are say £300 and you charge £450, you pay customs the VAT on £150 i.e.:£25, also bare in mind this works out less because your fuel and tools will cost less. I also think it gives your business an air of legitimacy if punters see you're VAT registered. The downside is you have to spend 4 half days a year doing your return, and you Must pay on time, otherwise they fine you, you will get the odd inspection, i've had 3. And it is their job to find s'thing to charge you, which they invariably do.

 

you dont actually chg xtra 20% (or maybe you do lol)
if you not vat reg, then if something is 10+vat then it costs you £12, then add your profit ontop then thats the price you chg the customer.
If vat reg then it costs just £10, then add your profit, then add the vat
Should work out the same.
So prices you already chg wont in fact 'go up'
well, unless you want em to lol

 

yes, but who doesn't pay the vat man at the end of each quarter

 

so long as you have the corresponding VAT receipt, as my acc loves to keep telling me lol

 

ok, 5 replies whilst typing, sos if i repeated stuff !!

 

another 3 lol

 

someone who wants a bigger bum hole!

 

If some thing is worth £80 sq + vat = £100 you get £20 back but you charge customer £100 + vat ="£120 you pay vat man £20
so with 20% discount / mark up you make 40 % sq metre

 

Holidays and meals out!!! have you ever had a VAT inspection and had to justify that LOL

 

You pay VAT on the £20 profit, £3.33

 

My accountant told me I can pay for meals if it's a " business meeting " and give a Xmas bonus of what ever I like as long as there's enouth in company some times I wish he never told me lol

 

Holiday was a Xmas bonus for father in law who works for me minimum wage and also happened to be going to the same place as me and mrs accountant said yeah it's by the book but not every year

 

Wear trainers for fitting, apparently can't claim VAT back on them unless steel toe capped. wasn't impressed

 

I think we must have the same accountant Steve! Can't put anything thru, trainers, meals. I know people that have bought motorcross bikes and put it thru their business!