Vat killing me!

[Tree Tastic Care]

I have but we all have to start small and work our way up . Unless you were lucky and fell into a good contract

[Brett]

This is something i am afraid of. VAT!

 

I have managed to turnover just under 50k the first 2 months of my new tax year. which means if i keep going this way i will be vat reg. I have nightmares of driving around doing quotes all day and not winning any work due to the extra costs & i don't want to become that guy who just thinks about money all the time!

 

I might need t take the rest of the year off work just to stay under the vat threshold.

 

don't be afraid of the vat, I can honestly say its probably been one of the best things for our business. Change your attitude, change the way you approach jobs, dont change your pricing, price what you need +vat, stick to your guns and it will balance out. I was worried about loosing work but 3 years later we are booked till Christmas.

[Ian C]

Why worry about it, it's part of running a business. Everyone pays vat on most things anyway without knowing it, it's really no big issue.

 

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[Ian C]

don't be afraid of the vat, I can honestly say its probably been one of the best things for our business. Change your attitude, change the way you approach jobs, dont change your pricing, price what you need +vat, stick to your guns and it will balance out. I was worried about loosing work but 3 years later we are booked till Christmas.

Pretty much the same Brett, out of curiosity do you Inc vat on you quote or plus vat? So do you say to a domestic it's 500 plus vat or just tell them it's 600 all in.

 

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[Brett]

i so firstly I never give a verbal quote and quotes are written +vat with the figure of vat shown then total cost, eg:

 

500 subtotal

100 vat (20%)

600 total

[Daythe trees]

I went flat rate registered in May this year and the rebate for the past four years 2k plus purchases was a huge help in getting over the speed bump of getting used to quoting plus VAT. I wouldn't worry to much I did and I needn't have, especially going flat rate as if you register for tree surgery you fall in the landscaping bracket and only owe 13% but charge 20% so only need to adjust your prices by circa ten percent. I don't do that anymore and work still comes in people accept VAT as standard so actually my prices have gone up. This means I can often afford an extra subbie and get the job done quicker.

[Al Cormack]

I went flat rate registered in May this year and the rebate for the past four years 2k plus purchases was a huge help in getting over the speed bump of getting used to quoting plus VAT. I wouldn't worry to much I did and I needn't have, especially going flat rate as if you register for tree surgery you fall in the landscaping bracket and only owe 13% but charge 20% so only need to adjust your prices by circa ten percent. I don't do that anymore and work still comes in people accept VAT as standard so actually my prices have gone up. This means I can often afford an extra subbie and get the job done quicker.

 

 

Tree Surgery comes into forestry so is 10.5%

The first year is 1% lower as well.

 

 

http://www.cormacktreecare.co.uk

[skyhuck]

Tree Surgery comes into forestry so is 10.5%

The first year is 1% lower as well.

 

 

Tree Surgeon - Woking | Cormack Tree Care Ltd

 

[Tree:Tment]

The VAT threshold is based on a rolling 12 month basis so if you turned over more than 33k in the last 10 months of the previous financial year then you are already over the threshold.

 

Yeah i spoke to an accountant with regards to this. This is turnover made in the new financial year for me. i run from Aug - Aug.

 

kind of depressing. Been working my ass off for 16years doing tree work. now i am in position where i can actually make a decent living for myself and offer full -time work to couple of guys but the VAT threshold is holding me back. I need to turnover well over 250k if i am to offer 4-5 days week to a couple of guys on regular basis. if i can't turnover more than 200k then i will be worse off than doing 3 little jobs week with 1 groundsman.

Edited October 20, 2016 by Tree:Tment

[skyhuck]

Yeah i spoke to an accountant with regards to this. This is turnover made in the new financial year for me. i run from Aug - Aug.

 

kind of depressing. Been working my ass off for 16years doing tree work. now i am in position where i can actually make a decent living for myself and offer full -time work to couple of guys but the VAT threshold is holding me back. I need to turnover well over 250k if i am to offer 4-5 days week to a couple of guys on regular basis. if i can't turnover more than 200k then i will be worse off than doing 3 little jobs week with 1 groundsman.

 

How do you come up with that figure????

 

I reckon you need between £80K to £100K of turnover per two man team.