Groundie/climber current rates?

[Barney]

Ok thanks, I was just trying to get my head round it.

[Paddy1000111]

15 minutes ago, Barney said:

Ok thanks, I was just trying to get my head round it.

You can also do fix rate vat too which can prove beneficial if you know how to play the game 😂

[Retired Climber]

10 minutes ago, Paddy1000111 said:

You can also do fix rate vat too which can prove beneficial if you know how to play the game 😂

Do you mean flat rate? That's only for very, very small businesses. I think you have to turn over less than 150 grand a year to use that. 

[Paddy1000111]

27 minutes ago, Retired Climber said:

Do you mean flat rate? That's only for very, very small businesses. I think you have to turn over less than 150 grand a year to use that. 

Yes flat rate! I wish I turned over more than 150k a year 😂

[eggsarascal]

7 minutes ago, Paddy1000111 said:

Yes flat rate! I wish I turned over more than 150k a year 😂

Turnover is vanity, profit is sanity.

[Paddy1000111]

That's true, does mean assuming you take no holidays or sick days and no working days off you pull in £574 a day which isn't unbelievable as a turn over but... I wouldn't be asking for current rates or building a better business plan if I was pulling that in 😂 

[David Cropper]

8 hours ago, eggsarascal said:

Turnover is vanity, profit is sanity.

Christ Alive, Eggs! Are you in a state of Zen? Very wise comment. You're not wandering around Suffolk in your saffron robes again, are you?

[Retired Climber]

8 hours ago, Paddy1000111 said:

Yes flat rate! I wish I turned over more than 150k a year 😂

A one man band doesn't need to turn over 150 grand to make a decent living. Start employing staff and buying machines though and you'll soon leave that milestone far behind. 

[Retired Climber]

8 hours ago, eggsarascal said:

Turnover is vanity, profit is sanity.

I agree completely; however, your profit is very unlikely to be higher than your turnover so you don't want to keep it too low. 

 

I'd also add cash is king (or cashflow at least). No point making a good profit on paper but always having to scrape around to find the money to pay bills. 

[Mick Dempsey]

9 hours ago, eggsarascal said:

Turnover is vanity, profit is sanity.

It’s a catchy phrase that gets trotted out from time to time and there’s some merit in it.

 But, If you’re selling widgets that you bought for a quid and sold for £1.01 and you sell  200 a week then it’s true, but if you sell 2 million then it’s a different story.

Tree work isn’t a goods supply business, fixed costs are usually quite low in comparison to a pub for instance.

 

So if you’re turning a lot of money over in this business it’s highly likely that you’ll cover your fixed costs fairly early on in the week/month/year

 

Large turnover can mean loans to buy machinery, which will improve productivity and can be written off after a period of time then sold privately when they still have a high value.

Pure profit is taxable, whereas capital assets are tax deductible.

 

There’s more than one way to approach running a business is all I’m saying.

 

I am no expert of course, not many of us are, not looking to argue, just encourage debate.