VAT registered - why do they ask?

[TimberCutterDartmoor]

Been having a few more of my larger quotations met with the simple question - "are you VAT registered"?.

 

Can anyone tell me why they would ask this? Is it because if I charge it they can claim it back? I'm intrigued since the latest asker of this question is a builder who has asked for a quote but it is for private work (or so I assume since he is buuilding the property requiring tree work for his own dwelling).

 

Any ideas?

 

Cheers.

[John Shutler]

i guess because it will increase the price

[Rupe]

So they know weathe or not to offer you cash?

[Dean Lofthouse]

I have lost a few jobs because I wasn't vat registered.

 

For the life of me I can't understand why, if I don't charge it they have no need to claim it back

[Steve Bullman]

I have lost a few jobs because I wasn't vat registered.

 

For the life of me I can't understand why, if I don't charge it they have no need to claim it back

 

possibly because they assume you are small and not up to the task if your business cant cover the minimum threshold. i know thats not the case.....but its probably the thinking behind some of the richer folk.

[Stephen Blair]

possibly because they assume you are small and not up to the task if your business cant cover the minimum threshold. i know thats not the case.....but its probably the thinking behind some of the richer folk.

 

thats it in a nutshell. no offence guys:001_smile:

[bob]

we once had 2 prices for a job 1 was slightly cheaper but the more expensive 1 was VAT registered so after we could claim the vat back the dearer one was cheaper:001_tongue:

[Tom D]

TBH I think its a credibility thing, and as has been said vat registered companies like to claim it back. I also know of many occasiond where I have been asked to invoice a company when clearly the work was private.

Having said that I can't understand how a 2 man team can stay under the threshold, even if you have 40 non productive working days a year a day rate of £310 will put you over the limit. There seem to be a lot of tree firms out there who have plenty of kit and seem to be doing well and yet aren't registered??

[Dean Lofthouse]

To me the vat syatem is unfair, as has ben pointed out, why should someone be able to claim back and others not.

 

Yes I could go registered then that would put a stop to my business over night, because I'm all domestic

 

£300 not vat

 

£300 plus vat

 

Which would you choose.

 

I think EVERYONE should be vat registered, that way it's a level playing field

[Stephen Blair]

To me the vat syatem is unfair, as has ben pointed out, why should someone be able to claim back and others not.

 

Yes I could go registered then that would put a stop to my business over night, because I'm all domestic

 

£300 not vat

 

£300 plus vat

 

Which would you choose.

 

I think EVERYONE should be vat registered, that way it's a level playing field

 

 

 

i have been vat registered since my third year in business, it was great. i was buying a mog and chipper, so i claimed approx 4 k back on it, you can claim 3 years vat assets back, so i got 8 k back as well. that paid for the chipper:001_cool:some people moan, others try and offer cash in hand. i stick by my guns. if you just tell them the inclusive price they are happy, its back to the 'type of customer' you get.