VAT registered - why do they ask?

[gibbon]

 

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

 

 

 

Don't be so sure of that. 80% of my work was domestic and like SWB had to register in year 3. I didn't find that it made too much difference to my clients. Yes you loose a few of the tight wads who want the cheapest possible job, but do you want that type of client?

[Dean Lofthouse]

In the last few years I've lost a fortune to vat.

 

A word of warning though, I did a job last year in which the customer asked how I wanted paying, I said cheque preferably because it costs a lot to pay cash into the bank.

 

3 hours into the job the neighbour leaned over the fence and told me I was working for a tax inspector..,.

 

Being vat registered encourages people to ask for discount by saying "how much for cash mate"

[Stephen Blair]

if i am working for someone i dont know, i will ask to be paid in cash on the day to guarantee i get my money, they will still get a vat receipt. if it is over 500 quid i offer a 5% discount aswell. the amount of time and fuel i have wasted trying to chase up money from folk out of town i don't know is unbelievable. they can always find a way of paying you on the day if they can save some pennies:sneaky2:

[Ian C]

In the last few years I've lost a fortune to vat.

 

A word of warning though, I did a job last year in which the customer asked how I wanted paying, I said cheque preferably because it costs a lot to pay cash into the bank.

 

3 hours into the job the neighbour leaned over the fence and told me I was working for a tax inspector..,.

 

Being vat registered encourages people to ask for discount by saying "how much for cash mate"

 

You must have a funny bank Dean, mine dont charge me for paying cash in. i would rather have cash as it's cleared straight away, cheque upto 8 days:thumbdown: I get alot of people asking "how much for cash mate" i always have a snigger when i tell them the same price they aggreed on.

 

The VAT thing is 2 sided, some people will use me cos they save a few quid and quite alot ask am i VAT reg, then some like the thought of a bigger firm cos they think there better! buy then i have to pay VAT on stuff and cannot get it back. Been told by a mate who is VAT reg not to get involved just out of simplicity and less hassle. we will see.......

[Mesterh]

I could probably guarantee that I would lose a good 99.99% if I went vat registered, 15% would not go down well to my customers IMO.

[Justme]

 

You must have a funny bank Dean, mine dont charge me for paying cash in.

 

 

Most biss accounts charge about 0.6% for cash deposits & withdrawals.

 

 

I could probably guarantee that I would lose a good 99.99% if I went vat registered, 15% would not go down well to my customers IMO.

 

You would not have to up your prices by the full 15% to keep the same bottom line profits as you can claim your inputs VAT back so offsetting some of the VAT you charge. Dep on your % of bought in running costs (fuel & equipment) to labour you would prob only see a 10% rise in your total prices. Also remember you can claim for some of the VAT you have paid for kit you still have for the last 6 years.

 

Its also likely that you will loose some private customers but gain far more company work than you loose.

 

Justme

[Dean Lofthouse]

I get charged roughly £35 a month account charges, which upsets me a little

[Tom D]

I get charged roughly £35 a month account charges, which upsets me a little

 

:scared1:

Change banks mate.

[bob]

I get charged roughly £35 a month account charges, which upsets me a little

 

use the interest gained from your other account to pay the charges

and you will still have enough interest left to keep your bed propped up

[Mark Bolam]

Why do so many domestic customers ask for an invoice for a piddly little job?

 

Are they short of bog paper?