Advice for newly V.A.T registered company

[Hodge]

I have been fighting it for the last few years, I have looked into it and spoke to people on here about it and I can't see it working for me. 80% of my work is domestic and most people ask if there is VAT to be added. I fear I would not get the jobs if I was vat reg.

[Ian C]

Never bothered me , thats life.

 

My plumbers vat so is the coal man and sparky. ......

[Ian C]

On fairness it depends on your business model, add up the vat you spend each month and you will be shocked, I spend about 800 a month on vatable goods so why not claim it back?

[Hodge]

Never bothered me , thats life.

 

My plumbers vat so is the coal man and sparky. ......

 

Yes but are your competitors? Only 2 of my competitors are vat reg so the customer has an easy choice.

[skyhuck]

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

 

Dont see the point really.

 

No.

 

On the "Fate rate scheme" you charge 20%, but pay 11% of turnover to the VAT man and only claim back VAT on purchases over £2K.

 

So its far less complicated, simply calculate 11% of turnover each quarter and pay that, plus there is little scope for you making an error and claiming for something you should not have and ending up owing a lump of VAT.

 

My accountant looked at it and reckoned it saved me around £800 per year.

 

I think you pay less for the first year 9% or 10%

[Hodge]

On fairness it depends on your business model, add up the vat you spend each month and you will be shocked, I spend about 800 a month on vatable goods so why not claim it back?

 

That's all well and good but I could loose double that by being vat reg and not getting jobs. On a 4 k job I recently did had there been vat to be added I doubt I would have got it.

[skyhuck]

Yes but are your competitors? Only 2 of my competitors are vat reg so the customer has an easy choice.

 

Yes so your competitor is paying VAT on all their purchases, you could claim that VAT back, plus the VAT on you truck, chipper, saws, etc, etc,

 

Surely that would make you able to charge less, meaning don't need to pass the whole 20% of the VAT onto your customers.

[Ian C]

No.

 

On the "Fate rate scheme" you charge 20%, but pay 11% of turnover to the VAT man and only claim back VAT on purchases over £2K.

 

So its far less complicated, simply calculate 11% of turnover each quarter and pay that, plus there is little scope for you making an error and claiming for something you should not have and ending up owing a lump of VAT.

 

My accountant looked at it and reckoned it saved me around £800 per year.

 

I think you pay less for the first year 9% or 10%

 

Don't see what's complicated about charging 20% and claiming 20% my accountant does it all for me.

[Ian C]

That's all well and good but I could loose double that by being vat reg and not getting jobs. On a 4 k job I recently did had there been vat to be added I doubt I would have got it.

 

And how many 4k jobs do you do a year? Each too thete own but it works for me.

[gensetsteve]

No.

 

On the "Fate rate scheme" you charge 20%, but pay 11% of turnover to the VAT man and only claim back VAT on purchases over £2K.

 

So its far less complicated, simply calculate 11% of turnover each quarter and pay that, plus there is little scope for you making an error and claiming for something you should not have and ending up owing a lump of VAT.

 

My accountant looked at it and reckoned it saved me around £800 per year.

 

I think you pay less for the first year 9% or 10%

 

Not sure how that would work on my business will have to take the time to work it out. I spend alot on diesel oil and filters apart from the odd van not much would go over 2k. 98 % of my customers are vat registered