2024 was always optimistic and that is what I was told a few years back from someone in HMRC not had any updates recently will have to try and find out how realistic 2026 isMTD for sole traders was going to be April 2024, but it’s been put back to 2026 but I’ll have retired fully before then
How Do You put Your Materials Through Company
- Thread starter gryphon
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It would be interesting to know what percentage of sole traders still don't even submit their tax return online...?
Judging by the number of tradespersons who seem to struggle with on-line click & collect ordering....
Or using the numerous websites and apps from various suppliers to search for any product you need before you get to the trade counter is quite mind-boggling to me...???
I hate wasting my time when collecting materials.. and as I can go on my PC / Tablet / Phone etc.. to search local Denmans / Screwbits / CEF's / Troolstations etc.. for what I need..
I can never understand when the bod in front of me in the queue hasn't got a clue if what they want is in stock...
Yet they are prattling away on their smart-phone to a mate/customer/colleague about something or other!!!
I just get the feeling they would be struggling and totally stumped with making anything digital for HMRC!!
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Me neither. But it seems the bod behind the counter is not allowed to say what we are all thinking.
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Lost count of the number of times I have seen the eyes rolling from the poor counter guy/girl.. trying to sort out the incompetent customer who hasn't got a clue what they really want!!
Internet ordering = less wasted time during the week, especially if you give a few days warning of what you need, so being short of items very rarely happens
More effective time working = more income = happy wife
More effective time working = more income = happy wife
That's because the YouTube video hasn't told them what to buy
Internet ordering = less wasted time during the week,
exactly. not got a website with prices on where i can order directly from? or 'login to see prices' or 'create account to see prices'? chances are I'll be skipping them and going elsewhere
don't tend to visit many suppliers in person other than a few local places. just easier to order online and have it delivered
also saves having to put up with the idiots not knowing what they want in the queue in front of you....
The whole solar job would be one single job, invoiced to the customer from the "solar co" that way there would be no VAT to add as it fall under the "0% VAT for energy efficient installations" https://www.deegesolar.co.uk/zero_vat_on_solar_panels/ and the solar company would be able to reclaim the VAT paid for the materials
the pat about the domestic and industrial electric companies being the same is correct, both do electrical installation, the setting is irrelevant. this case is different as the installation of PV systems and EESS is not exactly the same as electrical installation
my labour materials splits for the bulk of the work I do are more like 75% labour and 25% materials
valid points, I really don't know if they would look into how I drove to the job and which set of tools I use, as they obviously would be from the first company
about this specific question of mine? did they give a reason?
My accountant added something else to this, he said on the VAT registration form theres a part where you can indicate that you solely expect to claim VAT refunds and do not intend to ever pay VAT, and theres a box with supporting info where you could explain why, i.e VAT (installation of energy saving materials) order 2022 and it would be reviewed and agreed before the company gets a VAT registration
if they suspect tax evasion, they will. if you had 2 vans, 2 sets of tools and everything independant then you may get away with it. share anything and they will claim its the same and tax evasion. even if you call into a small job on the way home from a solar job
if you had 2 completely different business, i.e electrical contractor and a bouncy castle hire then it would be a lot easier to say they are different. 2 electrical companies, one VAT and one not VAT then i can't see HMRC accepting they are seperate
overall, its easier to just do everything as the same company and charge VAT...
They wont, it was this government that cancelled the FiT. They pay lip service to green tech, but too many of them have fingers in the oils and gas company pies.
Solar is great business, not many electricians will touch it, not many small companies are involved with it. It's easier than normal electrical work once you get the hang of it, and the margins are better. I spent 10 years doing solar work, and would recommend it, except in winter, coz its brass monkies in a roof....
Solar is great business, not many electricians will touch it, not many small companies are involved with it. It's easier than normal electrical work once you get the hang of it, and the margins are better. I spent 10 years doing solar work, and would recommend it, except in winter, coz its brass monkies in a roof....
I doubt this working unless both companies were LTD as the intercompany trading which will be difficult to avoid would I think cause issues. I had a similar setup running about 25 years ago with a business partner and probably more closely linked than your proposed setup
One company was an electrical contractor the other was a specialist high access and rigging company installing radio data comms kit and labour was very often cross hired between the companies as most of the employees of both companies were electricians and were also mast access, rope access and rigging trained, we also had the advantage the second company could take on electrical work at height
The reason for the 2 companies was down to insurances, working at heights above 20 - 30 metres and the insurance premiums rocket and when only 25 - 35% of the work was at heights when taken across the total payroll of an electrical contractor the insurance premiums get stupidly high when only a portion of the work is at height so all the height work was moved into another company.
The big accounting headache is which company owns which materials with the big items they can be easily tracked but the small item like screws, plugs, cable ties etc etc then there is wear and tear on tools, equipment and consumables like drill bits and holesaws
Another thing is it is unlikely you will not at some time have to charge VAT as my understanding is it is only the initial installation that is VAT free and any upgrades or additions and any maintenance work to an existing installation are invoiced with VAT
One company was an electrical contractor the other was a specialist high access and rigging company installing radio data comms kit and labour was very often cross hired between the companies as most of the employees of both companies were electricians and were also mast access, rope access and rigging trained, we also had the advantage the second company could take on electrical work at height
The reason for the 2 companies was down to insurances, working at heights above 20 - 30 metres and the insurance premiums rocket and when only 25 - 35% of the work was at heights when taken across the total payroll of an electrical contractor the insurance premiums get stupidly high when only a portion of the work is at height so all the height work was moved into another company.
The big accounting headache is which company owns which materials with the big items they can be easily tracked but the small item like screws, plugs, cable ties etc etc then there is wear and tear on tools, equipment and consumables like drill bits and holesaws
Another thing is it is unlikely you will not at some time have to charge VAT as my understanding is it is only the initial installation that is VAT free and any upgrades or additions and any maintenance work to an existing installation are invoiced with VAT
Oh dear oh dear...
I have not trawled through all the posts, but i think i get the gist of it.. So,
From the HRMC..
" The person or legal entity that runs the business, rather than the business itself, needs to register for VAT. If you are carrying out more than one business activity you should account for all of them under the same VAT Registration Number"
Thinking you can have two "businesses" to try to avoid VAT is doomed to fail..
john..
I have not trawled through all the posts, but i think i get the gist of it.. So,
From the HRMC..
" The person or legal entity that runs the business, rather than the business itself, needs to register for VAT. If you are carrying out more than one business activity you should account for all of them under the same VAT Registration Number"
Thinking you can have two "businesses" to try to avoid VAT is doomed to fail..
john..
Only real option then is to put one business in a different name, like the wifes, and sub-contract to that business from the other one. That of course can have implications for wife's tax affairs.
If your or I did it, the HMRC would say that it was a "novel" scheme to avoid tax and we would be in BIG trouble..
If however, we were the prime minister or one of the cabinet, there would be no problems at all..
john..
ain't that the truth
Use Jimmy Carrs company he was good at avoiding tax.
exactly. for us peasants, that's wrong. for those larger companies who have enough to pay for solicitors / accountants to tell HMRC what they are getting, they can get away with anything
was being the inportant bit there
