Vat killing me!

[simonm]

I have been advised by my accountant to start quoting my price + vat, i seem to be loosing work hand over fist, jobs i would of won previously i am now loosing which i put down to the extra 20%! the only way i can think of going around this is to pursue more commercial stuff

[skyhuck]

I have been advised by my accountant to start quoting my price + vat, i seem to be loosing work hand over fist, jobs i would of won previously i am now loosing which i put down to the extra 20%! the only way i can think of going around this is to pursue more commercial stuff

 

You need to take into account the VAT you will now be reclaiming, this will reduces your costs, this may well mean you only actually need to charge an extra 10 or 11%.

[fen01]

I went through that fit a few weeks. Stick it out, it sorts itself out after the first vat period.

[simonm]

You need to take into account the VAT you will now be reclaiming, this will reduces your costs, this may well mean you only actually need to charge an extra 10 or 11%.

 

I see where you are coming from, this should even it out a little, the area we are in is over saturated with every man and his dog doing tree work, 90% of which either stay below the threshold or are non tax paying folk. i now have a price hike to contend with. Has those of you that have gone down the vat route found your profits are down ?

[Treeman123]

Yep Stick it out You will end up with more work in the future

[simonm]

I went through that fit a few weeks. Stick it out, it sorts itself out after the first vat period.

 

Tbh it has got me down a bit, i see what folk are saying about claiming stuff back but as soon as people get a whiff of vat they go elsewhere! few people seem to be bothered about a job being done right and just want it done cheap! i dont wanna be riding allover Saturday mornings looking at work i know i am out priced in! just seems like another kick in the nuts from the uk

[Stephen Blair]

Unfortunately you need to accept your winning quotes percentage will go down, so you need to quote more and work harder to make the government more Tax for them.

[Ty Korrigan]

You need to take into account the VAT you will now be reclaiming, this will reduces your costs, this may well mean you only actually need to charge an extra 10 or 11%.

 

I do believe, that is about what we pay.

Being VAT reg actually increased our turnover long term through commercial work (other VAT reg businesses and organisations)

Ty

[Mark Bolam]

That's how I'd roll.

[simonm]

You don't have to display vat on your quotation only on an invoice right? which is what i have done, trouble is when they ask you either on site or the phone if it includes vat thats when i find i am buggered.