VAT registration

[Dean O]

Hi guys

 

the time has come for me to register for VAT

 

does anyone have any opinions on how becoming vat registered has effected their business -

 

I'm a little worried that i'm going to lose a lot of private/domestic clients

 

any help or advice recieved with many thanks:thumbup:

[skyhuck]

Look into the flat rate scheme, its not as good as it was (they have up the % we pay) but it can still work out better for a service business like ours.

[mark hooper]

:001_tt2:hi its a big knock for private customers but i found most were pleased the business was growing its when you quote against loppy chop i work on quality comes at a price and have tried all sorts to win new customers keeps you on your toes

[gensetsteve]

works well for me as my generator customers are large companies and can claim the vat back. My log customers only pay 5% so win all round especially with the amount of toys I buy.

[Dean O]

Thanks Skyhuck, will google it and do a bit of reading up...

 

hi Mark - thats the line we take at the mo - and it does work for us - even though 90% of the time i am up against the same "loppy chop" and our day rate is more expensive - but now we're more expensive - plus VAT on top.

 

I know its comercial suicide to drop my day rate but if it that or don't have any work.......

[Justme]

but now we're more expensive - plus VAT on top.

 

 

 

Dont forget.

 

Now that you are registered your running costs have gone down. So whilst your prices will rise they dont have to be a straight 17.5% on top of what you currently charge.

 

Obviously you need to work out what your charges are made up of & work out the purchase VAT cost to you, you can then take that off the bill before adding the VAT to it. I would guess that your prices would go up by about 12-15% unless you are buying big toys.

 

 

Oh & dont forget to claim back on all the stock you have on hand on the day you register (that have been bought in the last few years) & all the professional services you have used in the last 6 years for the setting up of the business (check the exact rules first cos I am not 100% on what they are).

[arbclimber]

Dont forget.

 

Now that you are registered your running costs have gone down. So whilst your prices will rise they dont have to be a straight 17.5% on top of what you currently charge.

 

Obviously you need to work out what your charges are made up of & work out the purchase VAT cost to you, you can then take that off the bill before adding the VAT to it. I would guess that your prices would go up by about 12-15% unless you are buying big toys.

 

 

Oh & dont forget to claim back on all the stock you have on hand on the day you register (that have been bought in the last few years) & all the professional services you have used in the last 6 years for the setting up of the business (check the exact rules first cos I am not 100% on what they are).

 

Good bit of advice there Justme:thumbup1:

[Dean O]

:thumbup:yeah thanks justme

hadn't been thinking of that - had just been worrying about the negatives - has put my mind at ease a little bit.

 

do you guys carry round a calculator to quotes.

[skyhuck]

:

 

do you guys carry round a calculator to quotes.

 

 

My phone has one, so I use that.

[Big 'Ammer]

do you guys carry round a calculator to quotes.

 

Its fairly easy to do in your head.

 

17.5% is 10% + 5% + 2.5%

 

Take 10% and half it and half it again.

 

Add these 3 figures together.

 

So for example, a quote of £500 plus vat is

 

10% of 500 = 50

 

half of 50 is 25 (5%)

 

half of 25 is 12.5 (2.5%)

 

So, 50 + 25 + 12.5 = 87.5

 

Therefore, £500 + 17.5% VAT is £87.50