Increasing hourly rate after vat deregestration.

[sinewove]

Have thought of increasing hourly rate by 10% for domestic,since will still be cheaper
than vat reg traders.Present rate £25/hr,based in Yorkshire.I know materials will be dearer.Wondered what others think.
Regards,
S

 

[JBW175]

£25 is way too cheap in my eyes.

Not sure on prices up north as I’m on the south coast, but I think you’d get away with at least £40 an hour up there? With extra for the first hour on top.

 

[sinewove]

£25 is way too cheap in my eyes.

Not sure on prices up north as I’m on the south coast, but I think you’d get away with at least £40 an hour up there? With extra for the first hour on top.

Think you would have to be a plumber/gasfitter up here to get away with £40/hr.We have to deal with Yorkshiremen don,t forget.
Regards,S

 

[DefyG]

Did you think you were too cheap before de-registering?
Cant see relevance as to why deregistering should make any difference to your hourly rate!
Off course materials will/are going up but again doesn't affect hourly rate.

That said £25 is on the low side for a qualified sparks, certainly down here! so you might get away with an increase but you're customers will let you know if they think its too high!

 

[Zerax]

Cant see relevance as to why deregistering should make any difference to your hourly rate!

Because if you have to add on VAT... £25 + VAT = £30... so if your customer is not able to reclaim the VAT (as is likely the case for domestic customers)... they pay £30 not £25. So if you deregister for VAT, you could charge £30 per hour without the customer paying extra, but you'd be up by £5 per hour.

Obviously for customers that can reclaim VAT... the labour rate is not affected, BUT they cannot the VAT on the materials that have been used.

 

[DefyG]

you could charge £30 per hour without the customer paying extra, but you'd be up by £5 per hour.

So you are hoping to charge the extra you would have charged for the VAT but it ends up in your pocket not the vat mans?
I cant see the justification of charging more due to de-registering at the expense of capitalising on domestic /non- vat customers!

 

[JBW175]

Think you would have to be a plumber/gasfitter up here to get away with £40/hr.We have to deal with Yorkshiremen don,t forget.
Regards,S

Fair one, I forgot that they’re a bit more frugal round those parts...?

 

[sinewove]

So you are hoping to charge the extra you would have charged for the VAT but it ends up in your pocket not the vat mans?
I cant see the justification of charging more due to de-registering at the expense of capitalising on domestic /non- vat customers!

Was,nt increasing the rate by 20%,only 10%.Have found in the past on larger projects,the 20% vat on top makes the price uncompetetive.
S

 

[telectrix]

anyone gets £40/hour up here is either a liar or a brilliant salesman, wasted in this trade.

 

[Dustydazzler]

if You are worried about raising your rates , you could try being a smarty and start charging 25£ per 40 minutes without increasing your price

 

[sinewove]

if You are worried about raising your rates , you could try being a smarty and start charging 25£ per 40 minutes without increasing your price

Or join Mr Electric?S

 

[baldelectrician]

I charge £40 per hour

Upped it from £35 to £40 about 5 years ago and nobody batted an eyelid

 

[Dustydazzler]

40£ ph is probably spot on now for the domestic market , where I am it’s more like 50£-60 and nearer you get to central London it’s 60£-90.

but if you want to be competitive £40 ph would win you every job in my area

 

[littlespark]

I charge £40 per hour

Upped it from £35 to £40 about 5 years ago and nobody batted an eyelid

Yeh, but you’ve got a new van to pay for.

and you (and I) are dealing with Scotsmen.... never mind Yorkshireman.

 

[Dustydazzler]

Plenty money in Scotland . That little guy who runs the 24 hour rewires business charges a fortune . One of his videos he was saying it’s about £3500 to rewire a small flat in a day