I know of people who claim back their weekly food shopping!! wouldn't like to be in their shoes when the VAT man catches up with them though
I only say as sometimes it helps not being vat reg with schools , churches domestic etc but I've rarely lost jobs on normal commercial as they have put vat on so pushes price up. I've just quoted a downstairs on domestic in lvt 90 Sqm and my email back was. I suppose this price is subject to vat so when I told her no she was over the moon. I just can't see the benefits of being either vat registered or being a ltd company as it costs more and you become the tax man in my eyes.
It is compulsory over a certain turnover per quarter though (don't know what) schools and churches should be able to reclaim vat anyway, so shouldn't be an issue. domestic just include the vat in quote, never had a problem myself.
I know a guy who has track day superbikes he puts through. Apparently all you have to do is put some business stickers on them and it's becomes advertising or sponsorship. I knew another guy put his horsebox for his daughters' horses through.
Dont know mate??? i was half asking a question myself. Ask me a question about flooring and i can normally answer it. If i dont know i ring the person who can ! Ask me about VAT, well i was always told VAT means - Vodka & Tonic. No idea mate.
Here is one i dont understand. FloorSkills is VAT registered so we have to charge VAT on our courses. However, as the courses are classed as education then we are not allowed to claim back VAT on materials , tools etc purchased. So if thats teh case then you would think our courses should be VAT exempt ? well you would think so but the way i understand it, well if teh course is a requirement of your job that you HAVE To come on the course then it would be exempt. So for example, a NVQ is required by law to work on a building site once your cscs card expires. So a NVQ will be VAT exempt, but as its funded then basically the government get it VAT free but i then have to pay them vat on the materials used but cant claim back ! That make sense? i dont understand myself as there seems to many rules here.
But if the tools are a necessity of your trade, and you're VAT registered I don't understand why you can't claim back if your are charging VAT on all your courses. If you only have to charge on some, then you would claim a percentage, but if charging VAT on all, surely you should be able to claim on materials?
if tools and material are used for education then you cant claim vat back. They are not being used for tools for a trade as such. I cant see it being right myself but apparently thats how it works. However if i buy the tools for my own use then i can claim back vat. The tax man dont exept that i need 15 sets of each flooring tool out there for my own use and more so that FloorSkills has purchased them so they are not my tools. Like i say, i cant get my head around that one as surely for me to offer training then i do loose 20% on every thing i purchase and then the extra 20% i have to add onto course i dont see either. ???
Matt, can you not put them through as consumables.. or are you better off to rent the tools and put it through as rental expenditure...?
A guy who is selling a product for the same amount who isnt vat reg will make more money, ie carpet cost per sq m £ 6.00 plus say £4.00 plus vat is £12.00 = 4.00 profit for the vat reg guy Not vated, buy carpet for 6.00 plus vat is £ 7.20, if selling for same price(12.00 sqm) he makes £ 4.80. You may be able to claim for fuel, phone etc( and on that its not 100% claim, but a percentage) but your already down 80p on 1 sq metre !
Think you are confused Robroy, If non VAT reg charges a company £12 per sqm then he is £2 per sqm more expensive as the business can't reclaim the vat so he will loose the job. Also I would say if was a customer knowing that the supplier was not VAT reg and he was the same price as a company that was, I would tend to think I was getting ripped off, surly the non VAT reg guy must be at least a pound per sqm cheaper.
Not confused fella ,I suppose it depends what the majority of your work is, domestic or commercial , u answered my question on the fact the non reg guy can go in cheaper for the same profit and will get the job on the domestic. But i still would rather not have to find x amount every 3 months
Except the non-reg guy wont be doing a great turnover, so wont get the same discount from wholesalers?
Vat has its pros and cons, after reading different floorers views on it from this and other forums ive come to the decision im gonna hold off for as long as I can but at the same point if I started supplying alot of my own work and started to get near the threshold id probably just make the jump early to get used to it, but for now I like not having the complication of sorting it out.
If you get close be careful because once your over for any 12 month period they will back date the payments ........bas#####
The goverment knows no bounds when it comes to short changing you anyway they can with their ranges of taxes, atleast dick turpin wore a mask.
