VAT Registration

[Nick Connell]

Hi guys, the time has come that I am now going to be forced in to VAT registration. The vast majority of our work is domestic at the moment.

 

After Registration has anyone else noticed a shift towards commercial or VAT registered parish councils etc.

 

I am aware from next month for my regular customers I will be 20% more expensive. Have people found it makes them a lot less competitive?

 

Thanks for any input

 

 

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[Brett]

we have been vat for nearly a year now. yes you will lose jobs. no doubt. however i do not recall having lost an existing customer, all/majority of our customers are happy to pay the extra 20% for us to do the work. In my opinion vat is inevitable for any successfully growing tree squad, so pinch your nose and dive in, its really not that bad if you have a system. good luck.

[Woodworks]

I presume if you become VAT registered you can lower your costs so don't have to be 20% more expensive than before. All those things that you can now claim 20% back on is going to save the business a few bob.

[TimberCutterDartmoor]

Best thing I ever did going vat registered. Yep you loose people wanting cheap work but you get 20% back on all your diesel etc etc etc

[Al Cormack]

Check to see if you are eligible for flat rate vat scheme. You don't have to collect all the vat receipts (I still do though!) and is much simpler to run.

[Brett]

don't drop your prices to win the job, your taking money out your own pocket. If people don't want to pay the vat, walk. people who want it done on the cheap are not my target client base. If you want to offer a professional, efficient service you need the right guys and the tools, you need to find the clients who understand this.

[Andrew Gale]

We've been VAT registered for years now; yes we lose clients, yes our existing clients moan about an extra 20% but they get an efficient, quality service and they're willing to pay. Plus we've never been so busy; it gives you an opportunity to purchase better kit as you can claim the vat back.

 

As has been mentioned, don't lower your prices; this is a payment on top of what you're charging anyway so dropping prices will only dent your bank account.

 

A good tip is to put away on a monthly basis a fixed amount into an ISA account and use that to pay the vat; it's gaining interest and you won't be scrabbling every quarter.

[daveindales]

I went vat registered by choice a few years ago now, and have absolutely no regrets at all. I find the benefits outweigh the disadvantages.

[Steve Bullman]

I presume if you become VAT registered you can lower your costs so don't have to be 20% more expensive than before. All those things that you can now claim 20% back on is going to save the business a few bob.

 

You could do that, but why would you want to? Getting 20% back on everything is one of the perks of being vat registered. That extra paperwork has to bring some benefit.

[Ian C]

Best thing I ever did going vat registered. Yep you loose people wanting cheap work but you get 20% back on all your diesel etc etc etc

 

Same here. Lost one or two tight wads along the way but hay ho, I have one domestic customer who said "any firm worth there salt will be vat" you cant please every body, do whats right for you.