Nearly over the vat threshold, what do I do?

[Des 56]

I may be wrong

It used to be the case,not sure if it is the same now,but the VAT threshold for registering was if it was exceeded for any given quarter, rather than exceeding it over the whole year

 

[telectrix]

i was going to register till i found out i could not claim the VAT back on beer and smokes. bummer.

 

[Des 56]

i was going to register till i found out i could not claim the VAT back on beer and smokes. bummer.

That's because you have the opportunity to recycle the beer,it could end up with double vat claims

Most people just let it wash down the sink and toilet drain, but with some collection and filtering in place, it could be used multiple times

The downside being,the taste tends to get a little acidic lol

 

[Dave 85]

My main customer base is domestic. My 2nd year of trading turn over was just over 50 k. I wasn't even that busy. Can't imagine what it will be in the third year. Will have to have a chat with accountant.

if I go down the vat route I will start losing business, not a good thing

50k, domestic, second year of trading, not busy...
That there is pretty good going I'd say

 

[Dave 85]

Hi egg

i was in your situation this time last year, my work then was about 60% domestic and i was worried about having to register for vat, but since i have done it i can honestly say i should of done it years ago

your running costs are much cheaper, and it gets rid of some of the more undesirable tighta#%¥ customers

if youve got a good reputation and work on recommendation then people will pay for you and the vat wont really matter that much, its allready on the materials you supply anyway

also if your going to grow your business then vat reg is inevitable and you wont really be considered a proper outfit if you start doing much in the way of commercial work without it

its a bit more paperwork but it depends on your future plans at the end of the day

trying to avoid it will stunt the size of your business, and getting customers to supply materials will A, cause problems with them picking up the wrong stuff for the job or cheap toot or forgetting alltogether, and B will remove the earning oppotunity from your self by applying a mark up to your materials

its not as bad as you think mate honest! I prefer it!

One thing you will find (apparently) with being VAT registered is that every tom, dick and harry will be trying to shove pound notes in your face....which may be looked upon as a good thing by the less scrupulous of us out there.
On the whole though I'd say if you're doing mostly domestic then materials will probably only be around 20% of your turnover and VAT will just scare off clients.

 

[monkee]

I have an idea why don't all sparks go Vat reg it is a better bet, think of it as your costs are being paid for by your customer, all your over heads have Vat attached to it make sense if done correctly you have to be strict with cash flow to.. I have heard that we are going to be HMRC targets if you are doing electrical reports you are making a nice list ready for them to go at so join in the big game of life its not bad at all good luck. PS try LTD company instead of sole trader might help.

 

[Welchyboy1]

I have an idea why don't all sparks go Vat reg it is a better bet, think of it as your costs are being paid for by your customer, all your over heads have Vat attached to it make sense if done correctly you have to be strict with cash flow to.. I have heard that we are going to be HMRC targets if you are doing electrical reports you are making a nice list ready for them to go at so join in the big game of life its not bad at all good luck. PS try LTD company instead of sole trader might help.

agree... Im going limited next year, but all these things depend on what your aiming for in life, if your happy being a sole trader doing domestic as a OMB then it makes sense to try and avoid being vat reg at it is more hassel,

but if like me, your aiming at trying to build a business you can hopefully sell on later in life, or at least be off the tools, then mandatory vat reg is a good sign your growing in the right direction

you need to speak to your accountant for advise

I just dont want to be scrabbling around in a loft when im the wrong side of 50 thats all