Vat increase

[miker]

For the smaller business that is not vat registered, is it ok to put rates up to cover the vat increase? ie fuel costs, parts costs etc, any thoughts on this, cheers

[skyhuck]

You can charge what you like.

 

If your costs have increased, you need to pass that cost on, IMO.

[roseyweb]

So on a £500 job you need to charge a extra £12.50 to make up for that 2.5% increase

 

pfffffft!

 

If you work out your quotes so mathematically

[skyhuck]

So on a £500 job you need to charge a extra £12.50 to make up for that 2.5% increase

 

pfffffft!

 

If you work out your quotes so mathematically

 

Very true, but its also £2500 on a years turnover, so as its not a lot I'm sure the customers won't mind paying it

[miker]

a lot of my work is regular contracts, so if i dont increase my rate im working for less!!

[gensetsteve]

Its a good excuse to put up your rates. I would stick another 2.5 % on because its 2011. I would have thought diesel going up 25% in less than a year was a good reason for all of us to charge an extra 10%.

[Rupe]

You only need to add 2.5% on to the things that you buy with vat on, if that makes sense.

 

So a 500 quid job, how much of that gets spent on vat stuff?? Theres fuel and kit etc. but the majority of it is wages, profit, etc and theres no vat on that so no need to add 2.5% to the whole 500.

[likeitorlumpit]

You only need to add 2.5% on to the things that you buy with vat on, if that makes sense.

 

So a 500 quid job, how much of that gets spent on vat stuff?? Theres fuel and kit etc. but the majority of it is wages, profit, etc and theres no vat on that so no need to add 2.5% to the whole 500.

 

thats the truth and what i was thinking

you could use vat increase as your excuse to put up prices though you're not vat registered but the intelligent customer will see this flaw

better to use increased insurance/waste/fuel/oh and i can remember stihl put up their prices by about 15% this year/servicing/additional paperwork due to government- theres loads of reasons in truth

Increase your prices and risk losing a contract is the big question and that depends on your relationship with your customer/quality of the competition in the area etc.

Don't risk that relationship by saying you have to increase prices by 2.5% due to VAT. You may end up looking like a con artist

Thats all folks

Aint business hard:001_tt2:

[Simon Rotheram]

thats the truth and what i was thinking

you could use vat increase as your excuse to put up prices though you're not vat registered but the intelligent customer will see this flaw

better to use increased insurance/waste/fuel/oh and i can remember stihl put up their prices by about 15% this year/servicing/additional paperwork due to government- theres loads of reasons in truth

Increase your prices and risk losing a contract is the big question and that depends on your relationship with your customer/quality of the competition in the area etc.

Don't risk that relationship by saying you have to increase prices by 2.5% due to VAT. You may end up looking like a con artist

Thats all folks

Aint business hard:001_tt2:

 

If you need to increase costs in order to make a proffit you dont need to explain it to anyone its simple business, unless you are contracted on a set price (which may allow a % increase pa).

[Rupe]

If your VAT registered then you don't need to increase (net) prices, as you get the increase in vat back on bought goods, and then you charge the extra vat too.

 

Its true that the non vat registered will have to pay more vat on fuel etc and so that could be passed on, as long as you don't price yourself out of the market.