VAT Rise

[Tom D]

With the coming vat rise how do you think you will adapt?

 

personally I think its a nightmare for us vat registered tree surgeons, since there are so many who aren't registered, we are 20% dearer.

 

I'd like to see the VAT threshold either increased to £150k or reduced to 30K that way it would be more of a level playing field. My turnover around the 100k mark is currently on the wrong side of the threshold, I'd either like to de-register or for my competitors to all register too.

 

So my poll question is: What should the government do.

[Big 'Ammer]

I think the threshold should be reduced to £50 k.

 

£30 k is too low and would cost too much to administrate.

 

That would level the job up a bit. IMO.

[Yorkshireman]

30 k Why not

 

it really will prohibite those who are vat reg'd form working for non vat reg clients in a way that is not recipricated by those non chargers working for vat reg clients

 

 

that said in a weird way some clients see vat reg as a pre qualifier they feel they arent likely to be getting a here today gone tomorrow service provider

[Gareth Dalzell]

I know what you are saying, but it doesn't really make you 20% more expensive if you are VAT registered as because you get the VAT back on all your fuel, equipment, etc etc which in turn lowers your overheads. I agree it does make you more expensive though, but it does have advantages when you go and buy kit and fill the van up. In our situation it's only a small percentage of our work is private so it doesn't fizz on the commercial side. The bit that really gets me is having to collect it for HMRC for nothing and then getting fined if I'm late or make and error:thumbdown:

 

I agree with yorkshireman - it does give a certain level of assumed business status.

[Big 'Ammer]

30 k Why not

 

it really will prohibite those who are vat reg'd form working for non vat reg clients in a way that is not recipricated by those non chargers working for vat reg clients

 

 

that said in a weird way some clients see vat reg as a pre qualifier they feel they arent likely to be getting a here today gone tomorrow service provider

 

Ditto the second point, Iain.

 

In any industry, one-man freelance workers don't want to be saddled with vat. It will just be a barrier to people employing them.

 

Others, who want to run a larger enterprise, employing other people freelance or on the books, should be registered for vat.

 

Where the threshold should be is a job for the govts. bean counters.

 

I think that the threshold should be lower than it is at present, to level the playing field.

 

People are used to paying vat on just about everything anyway, its just included within the price.

 

Get a plumber, electrician, builder, aerial fitter, whatever, who are in business for themselves and they will be charging vat and the public are used to paying it.

[Paul Jenks]

The main challenge with any taxation system is ensuring most people pay it. If the level is too punitive the black or 'cash' economy will thrive and the government will not gain extra revenue it requires. IMO emphasis should be on stimulating the economy. If the economy is growing steadily again people are more likely to spend and are less likely to avoid taxes.

The point about collecting the money for HMRC is well made and it is a significant burden on the smaller operations, especially those just around the threshold. A lot of small businesses will carry out works off the books or adjust invoice dates to keep under the VAT threshold.

In business there is always competition. Whether it's fair or not is subjective, we are a capitalist society after all. As legal and safe companies it's up to us to communicate the fundamental differences in our offerings to our clients and then it's their decision.

[Dean Lofthouse]

I say they should lower vat to 10% and make EVERYONE vat registered, at the moment, tax avoidance cost the government more and will cost them even more at 20% it's worth avoiding.

 

If it was 10% less people would bother

 

There will never be a level playing field because there will always be one vat registered person that will do a cash job

 

I reckon vat registered people have an advantage because they can, if required, do a job for cash whilst also claiming vat back on the overheads of that job

[Justme]

The system needs a revamp.

 

Lower the reg limit (£30k sounds good so one man bands can still earn a good "wage") or make everyone do it

The vat should only be paid by the end user not paid & reclaimed as it passes through each company / trader.

[ad15]

tom,, do you honestly charge VAT on EVERY job you do?? you NEVER do "cash" jobs at all.....??

[Mesterh]

Erm how about putting it right up, Mrs smith shouldn't have to pay more than necessary to get her own tree pruned. Why should the government get even more money.