Discuss Increasing hourly rate after vat deregestration. in the Business Related area at ElectriciansForums.net

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

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