Advice for newly V.A.T registered company

[wrsni]

If they want an invoice and you are VAT registered, you MUST itemise the VAT on the invoice.

 

Yes obviously, but that's not the point.

[roseyweb]

I think not being Vat reg'd rules you out for any large commercial work

eg when we do a big big job and we do plenty of them now days if you start having to pay for Vat on things like timber wagons, diggers, hire etc but can't charge it out you loose alot of coin.

It also makes you look more grown up when pricing with commercial, you don't cringe when you have to buy something and they say oh plus Vat,

We do about 80% commercial and thats what I prefer to win work on my good looks and professionalism not on price.

If you did 100% domestic its a no brainer Vat should be avoided

[roseyweb]

Also in my experience when you quote a domestic job always give a inclusive price, saves a lot of arguments and "can I pay cash for no vat" bartering later.

[wrsni]

Also in my experience when you quote a domestic job always give a inclusive price, saves a lot of arguments and "can I pay cash for no vat" bartering later.

 

Yes, that's a very good reason for dealing "gross" also.

[Paul Jenks]

We started VAT free. It took us 7 -8 months to reach the threshold. There is a way of getting a further 2 months vat free. It's to do with the timing of registering. The flat rate scheme only applies to companies/businesses under £150k, (ish. Don't recall the exact figure.) As we planned on and passed this in our second year it was never going to be worth doing.

Seems remarkable to me that a 2-3man team can turn over so little annually as to stay under the threshold. Must be taking too much cash.

We thought about the idea of quoting a gross price for private clients but it's a ball ache given the number of invoices we raise so didn't bother.

If you're VAT registered, your invoices have to have your VAT number on them and show the VAT component.

Go in and see HMRC. Our local office was very helpful when I went in.

[Treeman123]

Thanks guys. I am hoping to get more commercial work, I see you point about it looking more professional when it comes to getting the commercial work etc

[Treeman123]

We started VAT free. It took us 7 -8 months to reach the threshold. There is a way of getting a further 2 months vat free. It's to do with the timing of registering. The flat rate scheme only applies to companies/businesses under £150k, (ish. Don't recall the exact figure.) As we planned on and passed this in our second year it was never going to be worth doing.

Seems remarkable to me that a 2-3man team can turn over so little annually as to stay under the threshold. Must be taking too much cash.

We thought about the idea of quoting a gross price for private clients but it's a ball ache given the number of invoices we raise so didn't bother.

If you're VAT registered, your invoices have to have your VAT number on them and show the VAT component.

Go in and see HMRC. Our local office was very helpful when I went in.

 

When you say quoting gross price, How to i display this on my invoice? All I have to at the bottom is Gross total, Not e.g £350 + vat? sorry if i sound stupid just new to all this

[mattplace]

When you say quoting gross price, How to i display this on my invoice? All I have to at the bottom is Gross total, Not e.g £350 + vat? sorry if i sound stupid just new to all this

 

If you quote the gross amount, when it comes to invoicing, just divide the gross by 1.2 and that will give your price before vat.

Eg. Say you quote £175

175 ÷ 1.2=145.83

[Ian C]

But the other 10+ competitors arnt vat reg.

 

Most of my competition is not vat either they have too work more to get the same amount money ss I claom 800 a month back! Dont worry about the competition worry about you.

[John Shutler]

May I ask you why?

 

for a start every things 20% cheaper

the VAT man pays for me to have a brand new pickup

VAT man just paid for a ifor Williams tipping trailer

 

I was worried that id loose work by being VAT registered, it hasn't happened and im as busy now as I was before my registration