VAT reg

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Jgreenplastering

Jgreenplastering

Private Member
I've had no choice but to register in the last couple of weeks for the dreaded!!

Not ideal but I think it's for the best if I want to expand and carry on with the work load I have!

Any tips on how to handle it?

I know the basics but didn't know if anyone who has been Vat reg for a while had any tips or advice on best ways to plan and handle it.
Obviously spoke to accountants who've have some advice but wanted some from others in the same boat.
We're domestic only, spray render from April to November and inside after.
Have a few builders we work for who have no issues but it's the average Joe who will be frightened by the mention of it!



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Jgreenplastering said:
I've had no choice but to register in the last couple of weeks for the dreaded!!

Not ideal but I think it's for the best if I want to expand and carry on with the work load I have!

Any tips on how to handle it?

I know the basics but didn't know if anyone who has been Vat reg for a while had any tips or advice on best ways to plan and handle it.
Obviously spoke to accountants who've have some advice but wanted some from others in the same boat.
We're domestic only, spray render from April to November and inside after.
Have a few builders we work for who have no issues but it's the average Joe who will be frightened by the mention of it!



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So are you going to bump up your prices with 20% extra?

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we dont do much domestic because were vat.
it seems people will pay vat for renders but not for plastering.

builders dont tend to have an issue. as if they give you enough work they should be vat.

we use our vat we recieve as a saving account for our corporation tax
 
zolco said:
So are you going to bump up your prices with 20% extra?

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Maybe not the full 20 but def most of it.

I'm hoping this might be the push to go from the small jobs to more of the larger ones we've been doing last couple of years.ive gone from myself to myself 2 spreads and 1 labourer and the workload is there but don't want to go to big an then boom!


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Dansouthcoast84 said:
we dont do much domestic because were vat.
it seems people will pay vat for renders but not for plastering.

builders dont tend to have an issue. as if they give you enough work they should be vat.

we use our vat we recieve as a saving account for our corporation tax
Click to expand...


Yea the smaller the job the more it seems to frighten the client!

The builders have said no problem. Suppose because they can claim it back?

I tend to use CIS overpayments to go to the bulk of the corp tax. Worked that way last few years.
Was gonna to keep it all separate though and use it pay to anything I do owe!




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we deregistered from vat, no one wants to pay 20% extra so you can say goodbye to you private customers and insurance work and look forward to working on site and waiting 90 days for your payments.

we placed an add in the local papers, no vat added here, the builders federation went ballistic with a full page advert stating why the customer was better off paying vat, what a joke.

we sold some land off for building and because the money was over a certain % of our turnover that year we got charged vat on the sale because we were registered. never again!
 
malc said:
we deregistered from vat, no one wants to pay 20% extra so you can say goodbye to you private customers and insurance work and look forward to working on site and waiting 90 days for your payments.

we placed an add in the local papers, no vat added here, the builders federation went ballistic with a full page advert stating why the customer was better off paying vat, what a joke.

we sold some land off for building and because the money was over a certain % of our turnover that year we got charged vat on the sale because we were registered. never again!
Click to expand...

I think it's down to the client base.
Not every average Joe doesn't want to pay it, certain people don't care, they see it differently and some even think o they must be professional.
A factor is down to first impressions I think.
I've explained so far to potential jobs in quoting about the vat and they have still accepted the quotes regardless.

It's going to be down to costs again isn't it but hopefully we will have enough work where we will lose some jobs and still be ok.



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Jgreenplastering said:
I think it's down to the client base.
Not every average Joe doesn't want to pay it, certain people don't care, they see it differently and some even think o they must be professional.
A factor is down to first impressions I think.
I've explained so far to potential jobs in quoting about the vat and they have still accepted the quotes regardless.

It's going to be down to costs again isn't it but hopefully we will have enough work where we will lose some jobs and still be ok.



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it is not for me, filling in extra forms making sure their payment is made on time, you make a large purchase, claim the vat back and you will get a visit to inspect your books. you need to know all the answers as you are vat registered the person inspecting your books is not vat registered so therefore he will not need to answer any of your questions.
if they find anything out of order they can give you an extra bill.

my brothers plastering firm is vat and a ltd co. but he only does site work . he just gives the paper work to the accountant and let him sort it out. because he is a ltd co. anyone can go online and have a look at his accounts.
 
so what is the business plan ? charge everyone an extra 20% and hand the money over to the vat office!
 
Find a small independent accountant that works from home them just dump all the receipts to them every quarter like I do!!
She charges me £50 odd quid for her time which is ideal for me
Don't let it worry you mate
Just go with the flow and work for builders developers if you can
No vat on new build so happy days
 
malc said:
it is not for me, filling in extra forms making sure their payment is made on time, you make a large purchase, claim the vat back and you will get a visit to inspect your books. you need to know all the answers as you are vat registered the person inspecting your books is not vat registered so therefore he will not need to answer any of your questions.
if they find anything out of order they can give you an extra bill.

my brothers plastering firm is vat and a ltd co. but he only does site work . he just gives the paper work to the accountant and let him sort it out. because he is a ltd co. anyone can go online and have a look at his accounts.
Click to expand...

Is it a massive ball ache with the extra paperwork or OK if you keep n top of it?


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malc said:
so what is the business plan ? charge everyone an extra 20% and hand the money over to the vat office![/

Don't think I have much choice.

That's the Plan to start, I should end up with some extra back from materials etc then I'll work out if I adjust my prices so I'm not 20% and any loss is covered by vat I get back on materials etc.
It is what is at the end of the day.
If I want to expand as I am then I have to follow rules and take certain routes don't I.


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I've toyed with the idea but couldnt be arsed with the hassle. Why don't you just set up a Ltd company and use that for contract stuff then use your sole trader for domestic. That should keep you below the threshold.
 
If you do any Ewi vat is only 5% as opposed to 20% all customers who I deal with don't have a problem with this but it throws the price up if doing render only or plastering, are you trading as ltd or sole trader? I wouldn't even entertain the idea of being vat registered as a sole trader


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Accountants get alot more money for doing vat registered books if my knowledge is correct.
My mate went vat and packed in domestic as he was always more expensive than a non vat.
Hopefully you'll find a mix that suits you..
You sound like you doing really well at what you are doing.
 
The vat is easy enough, my wife does the book keeping and returns for all our business affairs.
It's a step in the right direction. You will be in a better position now to take on bigger and better projects, which can be far more financially rewarding if you have a good setup. You will lose some domestic customers but it doesn't matter, you can't do them all anyway.
 
I would lose so much work going vat registered it would be crippling, it's hard enough out there quoting against beer money merchants without it never mind lumping on an extra 20%.

Nope, no, absolutely not.
 
We are ltd our accountant is gud....90% of builders we work for buy materials so we are just charging labour..little tweak here and a little tweak there..if we bought all materials we wud defo go vat
 
stuart23 said:
I've toyed with the idea but couldnt be arsed with the hassle. Why don't you just set up a Ltd company and use that for contract stuff then use your sole trader for domestic. That should keep you below the threshold.
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If your a sole trader turning over 30k your ill advised. You should def be Ltd.
That's what I was advised anyway. Been a Ltd for 4 years now and that alone has given me a lot of savings against tax.
I'm no expert either but being a sole trader and a ltd company and channeling funds through both for the same work against the rules?


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The biggest problem you get with being Vat rated is customers will say "can you loose the vat for cash " if you give them a price with the Vat added ,it stops that
 
Jgreenplastering said:
If your a sole trader turning over 30k your ill advised. You should def be Ltd.
That's what I was advised anyway. Been a Ltd for 4 years now and that alone has given me a lot of savings against tax.
I'm no expert either but being a sole trader and a ltd company and channeling funds through both for the same work against the rules?


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Yep defo against the rules builder I know said his mate did it and vat man came dwn hard on him..there ain't stupid..me personally if was sole trader id be self employed..2 of us so its easier being ltd but dnt think there's much in it..wen was a sole trader got a nice rebate bk every may..dont get that anymore but pay less tax but its nice getting a few grand rebate every may
 
Jgreenplastering said:
If your a sole trader turning over 30k your ill advised. You should def be Ltd.
That's what I was advised anyway. Been a Ltd for 4 years now and that alone has given me a lot of savings against tax.
I'm no expert either but being a sole trader and a ltd company and channeling funds through both for the same work against the rules?


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Do u do more domestic than builders? U wanting to get into big site work?
 
Kitchy said:
Do u do more domestic than builders? U wanting to get into big site work?
Click to expand...

We have prob a week or 2 max each month where 2 of the gang will be doing work for builders the rest is all domestic.
Never ever gonna get into proper site work. Don't like the stories.
We do quite a few kitchen and bathroom refurbs and small extensions aswell.
I've got a team of subbies I pull in for each one and will oversee it all. Got some good lads, I pay them well so think that helps keep everything sweet, never query their costs and clients are always happy.
It's the collection of all these jobs that push the turnover up. I used to get clients to pay each trade but found it works better if I take the lot on and pay each trade.
More professional looking for client and better for me financially I find.
 
Jgreenplastering said:
We have prob a week or 2 max each month where 2 of the gang will be doing work for builders the rest is all domestic.
Never ever gonna get into proper site work. Don't like the stories.
We do quite a few kitchen and bathroom refurbs and small extensions aswell.
I've got a team of subbies I pull in for each one and will oversee it all. Got some good lads, I pay them well so think that helps keep everything sweet, never query their costs and clients are always happy.
It's the collection of all these jobs that push the turnover up. I used to get clients to pay each trade but found it works better if I take the lot on and pay each trade.
More professional looking for client and better for me financially I find.
Click to expand...
Ah rite so ull get like joiners etc and bathroom fitters in and sort of take the full works on instead of just the plastering? There's bad story's but site is king its where the dosh is but at same time it can go tits up..Job we are doing is 1st major Job we've done by oursens done like 10 plot houses etc but dnt consider that big compared to wat we are on now..just hard trying to get in door with arcitects etc to tender big jobs thought u wanted to go down that route aswell
 
straight forward enough now to complete on line every quarter, but don't be late other wise your fined, just make sure you keep it all in order doing it yourself as any gaffs your paying penalties or worse prison, mess around with your tax its a slap on the wrist and small fine, vat, and its big fines and jail time, hmrc don't mess about.
its the only bit of paper work I deal with the rest goes through my accountant, ive given them power of attorney as well so any issues with my tax, vat, cis go straight to them instead of me.
as said depends who you work for I guess, a good chunk of our work is for devlopers or builders that are vat reg so makes no odds.
I rarely loose domestic stuff as outfits I'm competing against are vat reg too and new build is 0% ewi 5% etc.
its worked great for me over the years as I claim a lot back every quarter as my overheads are big, just to stand still with vat on pretty much everything, I think my last return was £14,000 which comes out of your bank the week after submission, so cashfow is king.
end of the day your an unpaid tax man, but needs must I guess.
 
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