Advice for newly V.A.T registered company

[skyhuck]

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

 

Well going through all your purchases has got to be more work that simply calculating 11% of turnover, plus the 9% of VAT I keep works out to be more than I would have claimed back

[Hodge]

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.

 

But the other 10+ competitors arnt vat reg.

[Hodge]

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

 

I do quite a few big priced jobs each year, most are less thank the 4k, that was an example. As you say each to there own and you do what's best for you.

[gensetsteve]

Well going through all your purchases has got to be more work that simply calculating 11% of turnover, plus the 9% of VAT I keep works out to be more than I would have claimed back

 

I suppose its an easy one to work out look at last years turn over and what you paid in vat if it comes to more than 11 % your better off flat rate. Just watch you did not make a few large purchases in the first year you wont make for another 4 years. Also monitor it as you go in case the way you do business changes.

[Warners]

The vat reg debate is largely academic. If you register turnover over 79k then you have no choice. The benefits are whats already been mentioned like 20% cheaper fuel, equipment, vehicles, etc against the odd job you might lose because a punter doesn't like paying tax. Best option get into commercial work, vat then isn't an issue as 99% of companies will already be vat'd anyway.

[Treeman123]

Thanks for the reply's guy's. I dont have a choice now being over the 79k turnover so think i will just pass 10% of the vat on to the customer and see how that goes. Any more advice to do with VAT i would like to hear.

 

Thanks again

[wrsni]

In my experience charge somebody £120 for something and it'll be OK, tell them it's £100 plus VAT which is a total of £120 and you'll have an issue, and the issue isn't the twenty quid it's the fact that you're taking tax off them.

 

So for your domestic customers deal gross, they don't need a VAT invoice so just don't mention it. It'll surprise you how few of them even mention VAT.

[Treeman123]

In my experience charge somebody £120 for something and it'll be OK, tell them it's £100 plus VAT which is a total of £120 and you'll have an issue, and the issue isn't the twenty quid it's the fact that you're taking tax off them.

 

So for your domestic customers deal gross, they don't need a VAT invoice so just don't mention it. It'll surprise you how few of them even mention VAT.

 

Thats a good idea, so i just keep my invoices the same for domestic customers. I don't have to add anything else?

[skyhuck]

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

[wrsni]

No, you DO have to charge the VAT obviously but if they're not reclaiming it then you don't have to issue a proper VAT invoice detailing it.