Pricing to fell a tree

[mike1987]

If I'm vat reg my overheads are going to be 20% cheaper as I can get the VAT back on most of my overheads where you can't. Also due to the amount I can get back which in turn lowers my running costs which in turn lowers my costs and daily rate I can be pretty much in the same ball park as you.

 

You know I've never thought of it like that most people I've seem to charge the same as me plus vat I.e if i can do a job for 450 they would be 450 plus vat I have been told twice now that not being vat registered has got me the job

[Scott Walker]

You know I've never thought of it like that most people I've seem to charge the same as me plus vat I.e if i can do a job for 450 they would be 450 plus vat I have been told twice now that not being vat registered has got me the job

 

It will most definitely help you win private jobs, as a potential customer just seeing plus vat will put them off.

Im not VAT reg but have thought about becoming vat reg, but as 80% of our work is private I feel we would lose alot of business,

[Hodge]

It will most definitely help you win private jobs, as a potential customer just seeing plus vat will put them off.

 

Im not VAT reg but have thought about becoming vat reg, but as 80% of our work is private I feel we would lose alot of business,

 

 

I thought the same but touch wood it's worked out ok.

[Scott Walker]

I thought the same but touch wood it's worked out ok.

 

Certainly make it easier buying that new chipper, Are you glad you've made the change Hodge, I think i will probably end up going + Vat.

[Ty Korrigan]

Being VAT registered is an advantage if you invest in your business and or work for other companies who are VAT reg.

Non reg firms pay vat anyway, they just can't offset the vat they charge against the vat they pay in business expenses.

It is less of an advantage perhaps if you have little in the way of expenses as then you are really giving almost 20% to the tax man.

I buy a saw for a grand, that's 200 in VAT.

I work for a grand, charge 200 in VAT

One offsets the other, no vat to pay!

So at the end of the year your final vat bill may be really very low, far lower than 20% of your take.

It also gives some an opportunity to negociate and to offer a vat free Friday price for cash type monies if that floats your business boat.

 

Ty

[Richard 1234]

Click on the forum you want to use i.e. General Chat and look at the top left of the forum coumn where you will see a button "New Thread"

 

Cheers

mac

 

Thanks very much found it now cheers Richard

[NickinMids]

Why not split your business' in two. One entity for private jobs so you keep your turnover down below the threshold. Other is registered and works for commercial customers and buys the big kit. Internal expense crossovers jigged by bean counter

TA DA....lol

[Stephen Blair]

Unless all your current customers plan on using you forever and are very loyal and you are making the maximum profit below the VAT threshold then don't.

Customers change, customers die, customers decide they don't like you, customers run out of trees. A business plan should be like life as nothing is set in stone!

Usually what scares you is what you really want to do.

When I first started I couldn't wait to go VAT reg, kit was now cheaper! Good customers are wealthy customers and are happy to pay VAT as they can either easily afford it and have chosen your services because they know what they want, recognise a good worker and good job and will pay more! I never wanted to be the cheapest tree surgeon, I wanted to be the best.

Back on topic, it seems paranoia was the basis of this thread ! Stick to pricing your tree jobs and forget mind reading, it will drive you around the bend and unless you know a lot about your own personal Psychy, and why you think a certain way, then it will drive you even more nuts!

I've done trees for £750 when they could of been £2k, £1500, £250, £190! All plus vat 😃

It depended on how my day, week , month had been going, what mood I was in, was it raining or not! Did I want my opposition to get it or did I just want the glory of doing that certain tree!!

Edited January 14, 2015 by Stephen Blair

[NickinMids]

"I've done trees for £750 when they could of been £2k, £1500, £250, £190! All plus vat��

It depended on how my day, week , month had been going, what mood I was in, was it raining or not! Did I want my opposition to get it or did I just want the glory of doing that certain tree!!"

 

I think that's a great comment

[skyhuck]

Why not split your business' in two. One entity for private jobs so you keep your turnover down below the threshold. Other is registered and works for commercial customers and buys the big kit. Internal expense crossovers jigged by bean counter

TA DA....lol

 

Be very careful, you would need separate tools, machinery and vehicles for each business, if you don't the VAT man can make you pay back tax for up to 6 years, paying VAT you have charged is one thing, paying it out of your own pocket is a whole other thing.