VAT Registered

[kevinjohnsonmbe]

I’m genuinely astounded by the number of domestic customers that feel morally obliged to pay the VAT as their contribution to the overall tax take. 
 

The price for the job is the price for the job - we’re all at liberty to set our prices as we see fit according to our assessment of the relevant factors. I’ll price as appropriate and explain that VAT on top is not part of my pricing structure it’s a government tariff. 
 

Genuinely surprised how often potential domestic customers don’t see VAT as part of the price and so it doesn’t result in a perception of being uncompetitive. 
 

 

[Matthew Storrs]

25 minutes ago, kevinjohnsonmbe said:

I’m genuinely astounded by the number of domestic customers that feel morally obliged to pay the VAT as their contribution to the overall tax take. 
 

The price for the job is the price for the job - we’re all at liberty to set our prices as we see fit according to our assessment of the relevant factors. I’ll price as appropriate and explain that VAT on top is not part of my pricing structure it’s a government tariff. 
 

Genuinely surprised how often potential domestic customers don’t see VAT as part of the price and so it doesn’t result in a perception of being uncompetitive. 
 

 

Because it’s a shit system, I believe all buisnesses should be the same, they either all pay vat or they don’t. Whilst it’s like it is, customers are always going to view VAT as an add on when other contractors are not having to charge it.

Edited June 18, 2020 by Matthew Storrs

[kevinjohnsonmbe]

3 hours ago, Matthew Storrs said:

Because it’s a shit system, I believe all buisnesses should be the same, they either all pay vat or they don’t. Whilst it’s like it is, customers are always going to view VAT as an add on when other contractors are not having to charge it.

I couldn’t agree more Matt. 
 

They tax you on what you earn, they tax you on what you spend and they tax you on anything you leave behind when you go in the ground. 
 

Just makes me want to earn less, spend less and leave nothing ?

 

 

Edited June 18, 2020 by kevinjohnsonmbe
Forgot to put "less" in!

[dig-dug-dan]

Best thing I ever did was going vat registered. I never lost any domestic customers, and if anything, I got lots more work and bigger contracts, as they can claim the vat back.

Also, you can go back three years and claim the vat back on capital purchases

[donnk]

yup thats socialists for you.

[maybelateron]

1 hour ago, Matthew Storrs said:

Plus more time spent doing vat returns, or paying accountant etc. 

Honestly guys, the VAT return is nothing to be concerned about. I am not misleading anyone when I say it takes me five minutes to do my return, it literally is. All you have to ensure is that you use an appropriate accounts software, and have the self discipline to enter invoices for purchases and sales as they are created. I use an accountant as well, one of the bigger respected firms, from when I was in a different career, and I feel this is money well spent - if nothing else, HMRC know they are not a shady back street operation, and I would hope this makes me less at risk of a costly and time consuming inspection.

[aspenarb]

I cant see the problem with being VAT registered even for domestic work, it only affects the likes of Mrs Miggins and she is unlikely to jump ship just to save a few quid. VAT should only make you around 10% dearer overall.

 

 

Bob

Edited June 18, 2020 by aspenarb

[dig-dug-dan]

3 hours ago, maybelateron said:

Honestly guys, the VAT return is nothing to be concerned about. I am not misleading anyone when I say it takes me five minutes to do my return, it literally is. All you have to ensure is that you use an appropriate accounts software, and have the self discipline to enter invoices for purchases and sales as they are created. I use an accountant as well, one of the bigger respected firms, from when I was in a different career, and I feel this is money well spent - if nothing else, HMRC know they are not a shady back street operation, and I would hope this makes me less at risk of a costly and time consuming inspection.

I dont use any kind of account software, just good old excel!

[doobin]

10 hours ago, dig-dug-dan said:

I dont use any kind of account software, just good old excel!

Same, but the whole MTD is a bit of a cluster****************.

[donnk]

have a look at clearbooks. it does the vat online, you can take card payments from customers into it etc and its cheap.