VAT reg

Kitchy said:
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
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Yea.
I wouldn't call myself a skilled builder though, more a a project manager sort of bloke. I have some knowledge and can do quite a bit but I still have loads to learn.
Some will slate and call me a chancer etc etc but the reason I do it is because I've seen how bad some 'builders' are.
Not just the work they do but the way they do it.
Disorganised, unprofessional.
I just thought to myself I can do that better.
I have decent relationships with all the subbies I use and we all work together on the jobs and not the not my problem mentality.

I'm slowly working my way up. I love my job (more than my missus so she thinks!) and I think that's helps a lot aswell.

I don't think you can get to big for domestic. There's a balance. A company we work for, they turnover a couple of mill easy and that's just domestic extensions, refurbs etc with the odd commercial bit for maintenance.
There clients are all professionals themselves so they don't care about vat just a good job. That's what we're aiming for.

I think my opinion on site is only based on what I hear which has my head set on not doing it.
I like dealing with a client direct. On site there's to many middle men for my liking?
 
keithuk said:
We don't loose business by being Vat on domestic work , most expect to pay it


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I meant on smaller jobs 1 or 2 day jobs keith ..once someone goes down the vat route it's different if I am correct (I might not be)..vat registered charge more than sole trader so maybe j will not be doing so many "smaller jobs " and will take or have to take on more bigger jobs to make it worth while..if he is going over the vat freshold he will be better earning loads more than the freshold than just over it otherwise tax wise he would be better off not vat registered..
Obviously having a crew like he has it's was always going to be the case he would have to go vat at some point.
 
theplasterman said:
I meant on smaller jobs 1 or 2 day jobs keith ..once someone goes down the vat route it's different if I am correct (I might not be)..vat registered charge more than sole trader so maybe j will not be doing so many "smaller jobs " and will take or have to take on more bigger jobs to make it worth while..if he is going over the vat freshold he will be better earning loads more than the freshold than just over it otherwise tax wise he would be better off not vat registered..
Obviously having a crew like he has it's was always going to be the case he would have to go vat at some point.
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we do one or two day jobs ,Vat is Vat ,most could not give a s**t ,your vat because you turn over more work and your income has taken you over the threshold ,i dont see that as a crime ,most customers when it comes to there homes just want to see your past work
 
Kitchy said:
Does it open more doors being vat registered? @owls will know that man knows his stuff?
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it will not open any doors but it will close a few!
a local owner of a private estate that rents out over 100 homes tells me that as i am not vat registered it is an advantage for him to employ me.
 
algeeman said:
Interesting topic .....does any of you fellas have parnters or your own company directors ??
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Weird how it works..2 of us are company directors at our firm and employed by our firm as plasterers,accountant said we are classed as in full time employement now even tho we are self employed in effect..are u a sole trader? U pay alot less tax if ur ltd
 
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!
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I disagree here
Who waits 90 days for payment? Maybe only those working for for wimpey homes.
I work direct on sites and wait max 30 days
Ewi is only 5% anyhow.
If your a decent firm the client will still take you on
 
Kitchy said:
Weird how it works..2 of us are company directors at our firm and employed by our firm as plasterers,accountant said we are classed as in full time employement now even tho we are self employed in effect..are u a sole trader? U pay alot less tax if ur ltd
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We pay around 24% as s company
Sole trader pays 20%
 
@Jgreenplastering just remember to put the vat charged aside it's not your money. If you struggle with cash flow take cash back from the vat charged against what vat you have spent.
Vat benefits me as we mainly work for builders and developers on supply basis.
Maybe that ritmo should of been purchased after registration mate.
 
Kitchy said:
Weird how it works..2 of us are company directors at our firm and employed by our firm as plasterers,accountant said we are classed as in full time employement now even tho we are self employed in effect..are u a sole trader? U pay alot less tax if ur ltd
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This is the road we're going down luckily enough my brothers wife is an accountant.
 
Priceplastering said:
@Jgreenplastering just remember to put the vat charged aside it's not your money. If you struggle with cash flow take cash back from the vat charged against what vat you have spent.
Vat benefits me as we mainly work for builders and developers on supply basis.
Maybe that ritmo should of been purchased after registration mate.
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Doesn't matter as you can claim back 12 or so before the reg
 
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?


I've spoke to a few accountants who said its fine and know at least five other businesses that do it. That's the thing though, s**t hits fan and it's you that gets it even though someone who is supposed to know what there doing is advising you. Accountants should cop some flack for bad advising, would stop a lot of things.

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Priceplastering said:
@Jgreenplastering just remember to put the vat charged aside it's not your money. If you struggle with cash flow take cash back from the vat charged against what vat you have spent.
Vat benefits me as we mainly work for builders and developers on supply basis.
Maybe that ritmo should of been purchased after registration mate.
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You can claim upto 3 years of vat back on things you have bought and still own, the only thing that must not of changed is your company name, so if over 3 years you had 2 vans then a ritmo and a eze then all the vat will come back to you
 
malc said:
it will not open any doors but it will close a few!
a local owner of a private estate that rents out over 100 homes tells me that as i am not vat registered it is an advantage for him to employ me.
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Similar situation for me i do a fair bit for landlords that otherwise i would not get cos obviously they cannot get the vat back, there are also a lot of self builders and renovators around here who try to avoid vat registered outfits. I also do a lot of labour only work which while not for everyone works well for me because if they do not want to pay what i want then i move onto the next one. I just did a 2 bed house for a semi retired QC and his first question when i got on the job to view prior to preparing the quote was are you vat registered.
 
Not wanting to piss on the anti vat fire but on a £400 job (a 1-2 dayer) its an extra £80. There would be firms that aren't vat registered and are busy sticking prices in that vary by £50-100 anyway so ur not going to be massively out if not bang on. If your pricing a £10k job your at £2k above average joe but people spending £10k on a plasterer probably aren't worried about the "extra" £2k for an established recommended firm.

Since we went Ltd and VAT registered last year we've won at least as many private jobs as the years previous. If your a decent salesman then it won't effect you much if at all in my opinion
 
thebearbeef said:
Not wanting to piss on the anti vat fire but on a £400 job (a 1-2 dayer) its an extra £80. There would be firms that aren't vat registered and are busy sticking prices in that vary by £50-100 anyway so ur not going to be massively out if not bang on. If your pricing a £10k job your at £2k above average joe but people spending £10k on a plasterer probably aren't worried about the "extra" £2k for an established recommended firm.

Since we went Ltd and VAT registered last year we've won at least as many private jobs as the years previous. If your a decent salesman then it won't effect you much if at all in my opinion
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Are you pissing on my fire,lol
 
I pay myself minimum and take a bonus but most of the time i pile everything back into projects... this year has been an expensive year so profits will be a lot lower... A good accountant pays for themselves
 
Think I came across wrong earlier..my mate was domestic and some builder stuff then after vat registered he went for hotels,fitness centres,train stations,showrooms bigger site stuff and took on 5 guys and bombed off domestic.
I'm just small fry and can only dream of this kind of money..
My mate does very well for himself and his lads..so hats off to him and all that do well too.
Happy bank holiday lad's.
 
All our builders are vat registered so there buy all materials bar the odd little Job..all our money we get is profit money as its labour only so wud be no point us going vat like Dan says a gud accountant knows wat he's doing..bit gutting like wen we buy a £8000 van + vat and cant claim the vat back or all tools we buy as we spend alot of cash on tools but it all cums off the yearly earnings in the end etc..im not for or against vat aslong as I'm making gud money in not arsed
 
Kitchy said:
All our builders are vat registered so there buy all materials bar the odd little Job..all our money we get is profit money as its labour only so wud be no point us going vat like Dan says a gud accountant knows wat he's doing..bit gutting like wen we buy a £8000 van + vat and cant claim the vat back or all tools we buy as we spend alot of cash on tools but it all cums off the yearly earnings in the end etc..im not for or against vat aslong as I'm making gud money in not arsed
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More you earn the , more tax we pay
In terms of the vat back on van stuff you still have to buy the van though bud.
Nothing is free in this world
 
theplasterman said:
More you earn the , more tax we pay
In terms of the vat back on van stuff you still have to buy the van though bud.
Nothing is free in this world
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Vince what he's saying is if you buy a 10k van and your vat registered you can get 2k back of the price from being vat registered so in those respects it's good.
I've got a transit custom.
Almost 25k once paid but now I'm vat registered 5k I can claim back so in theory I'm paying less than what someone who isn't vat registered.
So there's pros and cons to it all.
Just because I now have to charge vat doesn't mean I'll be more expensive than others. Some yea but people who price high I may be the same still.
All I have to do is say to clients who ask yea I am vat registered but I'm still competitive and then they can judge for themselves if I'm to high or not.
 
Jgreenplastering said:
Vince what he's saying is if you buy a 10k van and your vat registered you can get 2k back of the price from being vat registered so in those respects it's good.
I've got a transit custom.
Almost 25k once paid but now I'm vat registered 5k I can claim back so in theory I'm paying less than what someone who isn't vat registered.
So there's pros and cons to it all.
Just because I now have to charge vat doesn't mean I'll be more expensive than others. Some yea but people who price high I may be the same still.
All I have to do is say to clients who ask yea I am vat registered but I'm still competitive and then they can judge for themselves if I'm to high or not.
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i think you can back date it for your machine as well mate ,worth looking into
 
Jgreenplastering said:
Vince what he's saying is if you buy a 10k van and your vat registered you can get 2k back of the price from being vat registered so in those respects it's good.
I've got a transit custom.
Almost 25k once paid but now I'm vat registered 5k I can claim back so in theory I'm paying less than what someone who isn't vat registered.
So there's pros and cons to it all.
Just because I now have to charge vat doesn't mean I'll be more expensive than others. Some yea but people who price high I may be the same still.
All I have to do is say to clients who ask yea I am vat registered but I'm still competitive and then they can judge for themselves if I'm to high or not.
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I know j ..you'll do really well , out of all the people on here I sure you will make this a success tbf you already have just aim really high past that threshold so it's worth it.
In no way was I knocking you just saying how my mate found it, he aimed high to make it work.
Blooming tax/government don't imo make it easier for people to make a business more successful ..someone earning say £70 000 is paying same tax band as just under £1000000
(i think)
And that's the stupid way of the world.
 
Kitchy said:
I know but u dnt get the vat back..thats y a gud accountant pays itself 10x over
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Accountants will always advise what will make them more money out of clients,

There worse than tradesmen..

But yeah
Suppose you might be right
Sod knows how I'd know if they were good
 
keithuk said:
i think you can back date it for your machine as well mate ,worth looking into
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Yea she did say that in all, quite a few things I've bought that's cost a bit I can.

I need to check when I went over the threshold as I know they can make me
Pay vat from then so it may cancel out any payment I'm due back with the first one[emoji43][emoji43][emoji43]
My accountant does all my returns but I do it yearly not monthly so need to keep track over actual turnover from now!
 
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