Advice for newly V.A.T registered company

[Treeman123]

Hi Everyone

 

Just looking for some advice, i have just had to go VAT registered due to going over the threshold. We have a 2-3 man team and have been in business for two years now. We seem to have a good reputation. I was hoping to stay under the VAT threshold for another year till i started getting more commercial jobs in, Unfortunately 90% of my jobs are private customers who are not VAT registered so cant claim VAT Back. I am worried now as i will have to charge 20% more or take a loss of 20%. I have been doing very well lately but i know for a fact i win a lot of jobs because i don't have to charge VAT on top. Has any one been in the same situation? Did you find you didn't win as many jobs or having a good reputation meant your customers paid more? Any advice would be great, trying to figure out what is best to do.

 

Thanks in advance

[skyhuck]

Have you considered the "Flat rate scheme"?

[John Shutler]

I've found being VAT registered is fantastic. Had I known what I know know, I'd have registered sooner

[sloth]

I've found being VAT registered is fantastic. Had I known what I know know, I'd have registered sooner

 

May I ask you why?

[gensetsteve]

May I ask you why?

 

You only charge 5% on logs and you can claim the vat back on everything you buy. Like the discovery van this week £2800.00 Vat does not affect commercial customers as they get it back. You could drop your price by 10% for your private customers and charge vat. You should not be out of pocket compared with before as at least you are reclaiming vat.

[Ian C]

I went vat from jan this year hasn't bothered me at all, most of my domestic haven't really bothered, yes you loose the odd job and get the odd winge but thats life, I aint in business for my customers benefit only mine.

[skyhuck]

I went vat from jan this year hasn't bothered me at all, most of my domestic haven't really bothered, yes you loose the odd job and get the odd winge but thats life, I aint in business for my customers benefit only mine.

 

That sounds quite harsh, I like to try and find a happy medium, where both I and my customers benefit from my service, but hey thats just me:001_smile:

[Hodge]

Have you considered the "Flat rate scheme"?

 

What's that?

[Ian C]

You only charge out at 5% I think but you cant reclaim vat.

 

Dont see the point really.

[Ian C]

That sounds quite harsh, I like to try and find a happy medium, where both I and my customers benefit from my service, but hey thats just me:001_smile:

 

Probably does sound harsh and yes I like customers being happy and yes they are valued but I aint really bothered if they don't like my businesses model.