Vat killing me!

[Al Cormack]

You have to register for vat if your turnover goes over £83,000 in a 12 month period. Doesn't matter when your financial year starts and finishes.

 

 

http://www.cormacktreecare.co.uk

[Peter]

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.

 

 

If your team is working 4-5 days a week they will need to bring in £1100 a day to achieve the turnover you're looking for.

 

If that's what you're doing then fair play, if not then I think you need to redo your sums.

[Tree:Tment]

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

 

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

 

all our costs are different, day rates for subs are different.

 

Take 100k. costs for fuel, insurances, repairs, etc etc - lets say around 30k a year. staff - 2 good guys at £100 a day is around 26k a year each. already at 80k!

and thats just 2 guys out. a lot of jobs require 5 men on site.

 

so out of 100k..you left with 20k. pay tax on that...left with lower wages that your subbies.

 

After doing my own projections and working out every costs..lat minimum turnover needs to be more than 230k.

[Tree:Tment]

If your team is working 4-5 days a week they will need to bring in £1100 a day to achieve the turnover you're looking for.

 

If that's what you're doing then fair play, if not then I think you need to redo your sums.

 

Pete. For a 4-5man crew its actually around £1300 a day. 3 man crew i am happy with £900 + some days.

 

everyone thinks they are making money until they need to replace 40k worth of equipment.

[Richard 1234]

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.

 

 

That's £80k plus turnover each man that seems high?

[Tree:Tment]

That's £80k plus turnover each man that seems high?

 

Richard it is high. But it depends on many things.

 

Just now i need to make decisions to either to grow my business very big and have stressful time driving around doing quotes all day, dealing with clients more etc or stay smaller and enjoy the tree work & climbing and be happy to live on a reasonable wage. The problem is my phone doesn't stop ringing for jobs and after years of struggling its hard to turn away work.

 

problem with growing a tree business is it takes the fun out of the job as i would rather be out working than stuck behind a desk.

[Peter]

Pete. For a 4-5man crew its actually around £1300 a day. 3 man crew i am happy with £900 + some days.

 

everyone thinks they are making money until they need to replace 40k worth of equipment.

 

Those numbers are about right, you were talking about a 2 man crew though.

[kevinjohnsonmbe]

Tree Surgery comes into forestry so is 10.5%

The first year is 1% lower as well.

 

 

Tree Surgeon - Woking | Cormack Tree Care Ltd

 

Appreciate if could share a link that shows this Al?

[Al Cormack]

Appreciate if could share a link that shows this Al?

 

 

It's all in here Kevin.

 

https://www.gov.uk/vat-flat-rate-scheme/how-much-you-pay

 

Cheers.....Al

 

 

http://www.cormacktreecare.co.uk

[eggsarascal]

It's all in here Kevin.

 

https://www.gov.uk/vat-flat-rate-scheme/how-much-you-pay

 

Cheers.....Al

 

 

Tree Surgeon - Woking | Cormack Tree Care Ltd

 

I can't see where it says tree surgery comes into forestry Al.

 

Am I missing something again?