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Morning Chaps
Just wanted some advice I’m a sole trader one man band electrician I’ve had my firm about 3 years and built it up slowly, recently taken on some larger projects like new builds etc for builder I know. I’m now in the position where I’m booked up until August. My worry is I’ve just had a regular contact me asking for shed power but I can’t fit her until August and that’s no good for her so I’ll likely end up loosing her as a customer which I’m not happy with really.
How do you guys deal with this situation? Do you sub it out? I’m loathed to take anyone on As this could just end up being a busy period so I could end up having nothing for them once it’s all over.
Any help or advice is appreciated
 
Do you not worry in this review culture we now have you’ll get negative reviews about being dismissive or expensive etc? I’m not saying you are I’m just wondering how the client would think.
I work in the commercial and industrial sectors, not domestic. Most of my work is in mining and marine and we often get referred to customers by equipment suppliers, manufacturers and consultants. The review culture doesn't apply or not that I've noticed. I'd guess the review culture might have more impact if you're working in the domestic or light commercial / retail areas.
 
being non=vat registered can be a pain if client is business. they can't get the vat back on materials. whet i do is get them to pay for materials and get invoiced direct by supplier.
downside is I don't make a mark up.upside is, I don't have th stand the cost of materials, and client gets his vat back.
I do similar, but my wholesalers have a margin on the cost for me which I get in the form of a credit note, which in turn reduces my turnover. Win win.
 
Think about that carefully, trade price + VAT to the customer or retail price etc: ............... I'm sure you have a catalogue with the retail price's shown.
With most catalogues, these days, you can get a decent discount off the 'retail' price with most wholesalers, though. They'll probably offer something similar trading direct, too, worse luck...and there's always the sheds.

I can't remember not being VAT reg. What's the current threshold?

Years back, one lad I knew, not registered, used to do just cash jobs and, depending on the customer's 'know how', used to charge the vat, too....cheeky sod (and not a scouser).
 
@Peter1891 I understand what you are going through and it seems like you are in exactly the same as me this time last year.

I was too busy to cope myself, I didn't start my buisness with loads of cash so I was working all the hours I could and doing all the paperwork and accounts aswell. Eventually I found the bookkeeping was holding me back from getting in help from people it was all the worries about doing it right eg. How do I pay them? how to deduct CIS etc? All that stuff.

First thing I would say is, if you haven't already is get a good accounting software (I use quickbooks I've been told others like Xerox are just as good).
They will categorize your expenses as you go, you can invoice from it, estimate from it, check your profits, generate reports plus keep tabs on monthly wholesaler bills, once you have mastered that, register yourself on HMRC website as a contractor (that allows you to submit CIS returns for subcontractors).
Once this is all setup its easy to input data as you go and, easy to get help for a few days from a subcontractor as all the payment side is in place.
Ideally its better someone you know and trust.
I try and keep my subcontractors as busy as possible as it allows me to carry out more work, I pay them as soon as they invoice, and they are happy have some loyalty and you can keep calling them back.
Plus your make ÂŁ50-100 a day on them as long as they are decent.

Next step get a decent accountant that will work with you, not someone who just does your tax returns at the end of the year. ( if you use Quickbooks, get one that is certified in that same goes for Xero as they know the software inside out!

It will cost you between 1-2K a year but they will have access to your accounts and will help you through the process of all the complicated stuff.

If you have a partner and have online accounting software maybe they could input stuff and do the invoicing, maybe look at putting them on the payroll first to learn how it works,

Honestly though get yourself in the position where its easy to ask for help get self employed help first, if your doing the paperwork learn how it works and how to manage that, then review it in a few months. Eventually your probably want to pass the accounting side over.

Also don't be afraid to tell people they will have to wait, don't always jump for builders either, it looks good to customers if you say to them that your busy and they will have to wait a few weeks.
Also don't worry about price, checkatit and mybuilder site reviews.
Money is akward to talk about and I get people just call you in and say, "just do it". Try to price as much as possible though, if someone calls you round to "just do something" dont feel bad about sitting in your van and giving them a rough estimate. (I do mine on quickbooks app) Otherwise your end up undercharging and it wont help your situation, your end up with a load of customers that just call you round to do stuff, and your like me, your be undercharging them all.
 
Last edited:
Agree Quickbooks is the way to go, had a VAT inspection with two assessors in my office for three days, it ended that they owed me just over ÂŁ2.00 can you imagine how much that cost the tax payer i.e. us.
 
Agreed... if most of your customers are also VAT registered. But if most are small, non vat registered domestic ones... they're paying 20% on your labour costs ! Could mean you miss out on lots of work to someone else, who's doesn't need to charge the extra !
You don’t have to charge them vat....if you know you are well in front on materials you can swallow the 20% on the smaller domestic non vat customer.....
 
I would try and change the way you look at it and feel about it. It's good that you have so much work and you should feel secure and happy. It's up to you if you decide to feel stressed and guilty, that's a choice you are making. I felt guilty years ago when I had to say to regulars they would have to wait for a month or 2. Now (If I really can't fit them in), I feel fine about saying I'll get to you in a few months, they usually wait.

I'd be happy working Saturday's for a few months but I wouldn't get into the habit of working Sunday's as well. You need a rest, and a life.
 
I had this exact same dilemma a few years ago and discovered the hard way - I was too busy and too cheap!
Builders would completely book me up until I had no time for the small stuff, yet they’re the ones who will drop you at a moments notice whilst all the other work had tailed off! I tried the sub-contractor route yet struggled to find anyone who’d maintain my standard of work :(
The small stuff was the bread and butter of my business and often the more interesting/enjoyable!
Anyway, increasing my prices was the move I took, which instantly made all the bad jobs and the cheap builders go away.
Return customers and word of mouth never dropped as a result of this increase as they knew they were still getting a good job, and now not rushed!
I’m also near the ES/Kent boarder if need any help??
 

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