VAT reg

How long does It take then roughly wen u apply to be vat registered? We are off vat at end of may we've been advised as that's wen it will be start of our year in earnings etc..guna even have to hold invoices soon so don't go over as we havnt been charging vat and cnt be arsed chasing all vat money so wud rather stay around the threshold
 
We went vat registered on 1st may..if it wudnt of been for this thread we wudnt of done it and most prob wud of been fined etc..accountant set us up on the flat rate scheme tho any1 on that?
 
thebearbeef said:
How you getting on @Jgreenplastering got to grips with the vat situation now? Has it hurt you much so far?


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So far so good I think mate.
I've been putting the 20% in a separate account so I should have enough to cover it plus then take off what I get back.
Time will tell my first return is in July and my accountant will sort that with me.


As for winning/losing jobs I had a few I took deposits off before the reg date so didn't have to add the vat to them but can claim it back on materials for those jobs I believe.
My contractors I work for have happily added it to my invoices.

I've lost a couple because of the vat I think but I'm still getting accepted for others and we are booked until September now.

I have quick books now which helps with the paperwork side of things.

One thing that boggles me is the vat amount of a figure.
For instance
If I charge 150 plus the vat, the vat is 30quid but then if I take vat off of 180 vat is 36.
I always put my price exclusive of vat and it states the vat on a quote but for some reason this equation always springs in my head and I doubt myself if I'm doing things correctly!
 
Jgreenplastering said:
So far so good I think mate.
I've been putting the 20% in a separate account so I should have enough to cover it plus then take off what I get back.
Time will tell my first return is in July and my accountant will sort that with me.


As for winning/losing jobs I had a few I took deposits off before the reg date so didn't have to add the vat to them but can claim it back on materials for those jobs I believe.
My contractors I work for have happily added it to my invoices.

I've lost a couple because of the vat I think but I'm still getting accepted for others and we are booked until September now.

I have quick books now which helps with the paperwork side of things.

One thing that boggles me is the vat amount of a figure.
For instance
If I charge 150 plus the vat, the vat is 30quid but then if I take vat off of 180 vat is 36.
I always put my price exclusive of vat and it states the vat on a quote but for some reason this equation always springs in my head and I doubt myself if I'm doing things correctly!
Click to expand...
We are flat rate so we charge 20% but only pay vat man 13% but we cant claim on owt below £2500 I think it Is dsnt matter to us as most people supply gear all ours is pretty much profit with no material cost..
 
Jgreenplastering said:
So far so good I think mate.
I've been putting the 20% in a separate account so I should have enough to cover it plus then take off what I get back.
Time will tell my first return is in July and my accountant will sort that with me.


As for winning/losing jobs I had a few I took deposits off before the reg date so didn't have to add the vat to them but can claim it back on materials for those jobs I believe.
My contractors I work for have happily added it to my invoices.

I've lost a couple because of the vat I think but I'm still getting accepted for others and we are booked until September now.

I have quick books now which helps with the paperwork side of things.

One thing that boggles me is the vat amount of a figure.
For instance
If I charge 150 plus the vat, the vat is 30quid but then if I take vat off of 180 vat is 36.
I always put my price exclusive of vat and it states the vat on a quote but for some reason this equation always springs in my head and I doubt myself if I'm doing things correctly!
Click to expand...

The reason your making a mistake with the numbers is an easy mistake to correct.

If your pricing a job as £1000 for example its
£1000 + 20% = £1200

To work the figure out backwards you can't just - 20% like you do for your normal tax.

The calculation to find your gross before vat is £1200 divided by 6 (£200) times 5 = £1000
 
I only know because the kitchen firm i work for charges vat and he always tell me what hes allowed for plastering inc vat and got sick of asking him what it is less vat lol

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Mental is that flat rate scheme tho..make 7% on all the vat u take..granted accountancy fees will go up but there will still be some meat on the bone to make a little profit off the vat man
 
We also got a letter stating we had to sort our 1st payment of vat 31st may wen we only got registered 1st may then every 3 month after that..wankers
 
Kitchy said:
Jumping on a mountain of student appartments soon hopefully but its 0% vat so we've been told
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Unless im mistaken its 0% vat for the main contractor but your obliged to charge him 20% still. He then sorts out the difference on their vat bill. Thats how i've based our invoices anyway
 
thebearbeef said:
Unless im mistaken its 0% vat for the main contractor but your obliged to charge him 20% still. He then sorts out the difference on their vat bill. Thats how i've based our invoices anyway
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Will have to look into that I phoned my accountant and he said all we dl is put 0% vat on labour invoice
 
Fair enough, we're flat rate registered though so i'll be charging it to contractors anytime we can do [emoji1303]


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thebearbeef said:
Fair enough, we're flat rate registered though so i'll be charging it to contractors anytime we can do [emoji1303]


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I know we are that's y I'm gutted as cant make that 7% on vat but will still have to pay accountant to do the vat return s**t..looked on website and think it says u charge 0% vat on labour and materials on new build/flats
 
keithuk said:
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
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so you can get paid cash if you dont charge VAT...................:frenetico:



(y)
 
Jgreenplastering said:
So far so good I think mate.
I've been putting the 20% in a separate account so I should have enough to cover it plus then take off what I get back.
Time will tell my first return is in July and my accountant will sort that with me.


As for winning/losing jobs I had a few I took deposits off before the reg date so didn't have to add the vat to them but can claim it back on materials for those jobs I believe.
My contractors I work for have happily added it to my invoices.

I've lost a couple because of the vat I think but I'm still getting accepted for others and we are booked until September now.

I have quick books now which helps with the paperwork side of things.

One thing that boggles me is the vat amount of a figure.
For instance
If I charge 150 plus the vat, the vat is 30quid but then if I take vat off of 180 vat is 36.
I always put my price exclusive of vat and it states the vat on a quote but for some reason this equation always springs in my head and I doubt myself if I'm doing things correctly!
Click to expand...
Start with price that includes vat and divide by 1.2 to get the original price with no vat

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You charge the builder 0% if it's new build, there are various other rates ie 5% on energy saving work ewi renders for instance there are different rates on churches etc too. It Tallys up in your books as if your claiming more than your charging you get refunded the difference. I've always found being vat registered works for us due to me having that many overheads to claim against and not doing to many domestic jobs and even then in the render game most are vat registered, so it's like for like.
 
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