Is there money to be made?

[Logsnstuff]

I was cutting fresh felled beech last week a 0.73m3 bag weighs in 498kg

[County 764]

hi thanks for all your replies that price is 1750 all in delivered. It isn't cheap by all means but there is still room for a bit of profit I think. cheers guys

 

Ye if you can make a profit on it or just keep your usual customers ticking over. It's still the most expensive firewood I've ever heard of but there are huge variations in price across the country

[Firewoodwales]

are you vat reg?

 

hi no im not vat registered. im a tree surgeon trying to earn an extra buck selling logs.

[slim reaper]

How green is the wood, if its not seasoned you may sell it but then not get return custom?

slim

[TimberCutterDartmoor]

hi no im not vat registered. im a tree surgeon trying to earn an extra buck selling logs.

 

So you can't claim the vat back on that beech .

 

I would make a loss at the price you mentioned selling at the going rate here which is admittedly the lowest around it seems; £70m3.

[muldonach]

hi no im not vat registered. im a tree surgeon trying to earn an extra buck selling logs.

 

It is probably worth becoming registered - if you are paying 20% VAT on all your inputs and not able to charge on outputs then you are starting with one hand tied behind your back in my view.

 

We registered as soon as we started and it makes a big difference

 

Cheers

mac

[TimberCutterDartmoor]

It is probably worth becoming registered - if you are paying 20% VAT on all your inputs and not able to charge on outputs then you are starting with one hand tied behind your back in my view.

 

We registered as soon as we started and it makes a big difference

 

Cheers

mac

 

second that.

[Shane]

If you register for VAT you can claim back 20% of the purchase price, but you have to pay 20% of the sale price back to HMRC.

 

If you are running at a profit, then by definition the ouotgoing 20% to HMRC will be more than you claim back on the purchase price. Are you not just becoming a tax collector?

 

As long as your turnover stays below the threshold you're better off not VAT registered.

 

Please correct my maths if I've misunderstood how this works.

[slim reaper]

Being vat registered mean ones quotes are 20% more than non registered businesses which does not go down well with private customers and looses a lot of work !.

The vat that has been paid by non VAT businesses is still passed on but no need to show it on the invoice.

slim

[AardvarkTreeServices]

As I understand it working as a tree surgeon is primarily selling labour and theres little VAT to be reclaimed and all quotes have to have 20% VAT added.

 

If your mainly dealing in logs then can claim 20% VAT back on bought in logs and only have to charge 5% on logs sold for domestic heating.

 

The OP is working as tree surgeon with the logs as a sideline so it seems to me that if most of his tree work is domestic, then he shoukdnt register for VAT unless turnover is over he threshold of £70k ish???