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Good point about the VAT!

Also to bear in mind is the VAT threshold test is done on a sliding 12-month window, not on your financial year. So if you get a lot of work at the end of one year and at beginning of next there is a danger you pass the threshold even though both year's turnover is below it.

Unless you expect to be at/above VAT level for a good while you really want to avoid crossing that point! While you can claim stuff back, it adds a whole lot of extra accounting effort and pushes you in to the Making Tax Digital area. If you already use some software package to manage your daily stuff Xero or QuickBooks, etc, then its not such a big deal.
 
I would advise anyone to have a software package for your accounts and to be VAT registered even if you don't reach the threshold, the amount of monies you claim back on fuel alone is worth it without the reduction in outlay for equipment, but you need to be disciplined in keeping your records up to date.
 
@Peter1891 are you VAT registered?
And if not, do you plan to be or is it something you want to stay away from?

If it is something you plan to stay away from, then there is a fair chance there is a glass ceiling you will hit that you can't go through without going VAT.

And if so busy under the current circumstances, I'd definitely be reviewing prices to see if too cheap.
Good point about vat I am trying to avoid it if possible I’m not good at paperwork etc plus it’s only me that has anything to do with my company as in i price work I do the work I do my accounts and struggle now so adding something else that needs doing on a tight time frame unless neccasary I’d rather leave it.
My prices I’m not sure about as I don’t get involved in what other people charge so I don’t have anything to compare them to.
Examples coming up:-
2x 4 bed new builds £5600 & £5800 ish
Large 17 bed special needs home eicr £1000
3 bed semi basic rewire £3800
6 way board and 4 bathroom d-lights £795
Extend some sockets and add some light points in a garage conversion £587
 
I would advise anyone to have a software package for your accounts and to be VAT registered even if you don't reach the threshold, the amount of monies you claim back on fuel alone is worth it without the reduction in outlay for equipment, but you need to be disciplined in keeping your records up to date.

I use xero and although im no longer vat reg, it is effortless for vat returns etc, it automatically does it all for you, the days of inputting it all on excel are long gone thank god
Nowadays doing nearly all domestic work, i found it a great effort being vat reg, everyone trying to get you to knock it off, if you can stay under the threshold then i would do it, if however your work is mainly commercial or ind then its obviously a no brainer and i thought it was great especially when its time to buy a new van!
 
I would advise anyone to have a software package for your accounts and to be VAT registered even if you don't reach the threshold, the amount of monies you claim back on fuel alone is worth it without the reduction in outlay for equipment, but you need to be disciplined in keeping your records up to date.
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 !
 
I'm on the East Sussex/West Sussex/Kent border so depending upon your customer's location in ES I'd be happy to help.
Thank you mate, I’ll keep it in mind. I’ve followed advice on here and I’m going to quote later today for the shed install and will take a day off sites to fit her in.
thank you all so much for your help. Dannyboy I’ll be in touch then.
 
I would advise anyone to have a software package for your accounts and to be VAT registered even if you don't reach the threshold, the amount of monies you claim back on fuel alone is worth it without the reduction in outlay for equipment, but you need to be disciplined in keeping your records up to date.

Are you actually any better off being Vat registered?
 
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.
 
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.
 
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 £50-100 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.
 
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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 £2.00 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.
 

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