VAT registration

[sellers]

Right with this PV going ahead, my mcs assesment coming up. I need to become VAT registered to be able to be competitive. Im unsure how to do this, and I am in 2 minds. Do I set up a limited company on the solar side and make that VAT registered, or do I set up a limited company in the same name as my business and run the 2 next to each other, 1 VAT and 1 non VAT.

Or just apply for VAT as a sole trader?

I am after gaining more commercial clients, do you think this would help? I do, do a fair bit of dommestic and don't want to price myself out of it, but If becoming VAT is going to help me get commercial clients I am willing to risk it. Thoughts anyone?

 

[Andy™]

for commercial stuff, VAT reg'd is a good idea.

im VAT registered, rarely causes a problem with domestic work, but can be a big help with commercial work

best speak to your accountant about how to set it up

 

[Evans Electric]

I registered for VAT years ago because 95% of my work was Commercial /Industrial . Doesn't help with domestic work at all TBH . Looking at your set up , Sellers , I think VAT is the way . Just phone your local office , also if your turnover is at the VAT level you have to anyway . Is it

 

[Andy™]

. Is it

 

[SLIPSHOD & SLAPDASH]

You can't run 2 similar businesses, one Vat registered and 1 not. I have not found it a problem with domestic customers. New customers i include the Vat when i tell them prices and its only when they get the invoice they see the breakdown

 

[hifly]

as i mainly do domestic I find it a good selling point and always mention I am not vat registered, as my labour is the biggest part of the bill they save a fair bit, if i mainly did comercial/industrial i would be vat reg for sure & as said above you can't have 1 vat reg and one not.

 

[Andy™]

for domestic customers, the price quoted is including VAT, for commercial, its excluding VAT

 

[sellers]

my turn over is around 55k so this would be voluntary, but would probably be forced when I start doing more solar

 

[Apache]

At work we wouldn't use a trades-person not VAT registered. That fact we get the VAT back on materials and labour makes it a good saving.

 

[Andy™]

At work we wouldn't use a trades-person not VAT registered. That fact we get the VAT back on materials and labour makes it a good saving.

if they were not VAT reg'd, there would be no VAT on labour to be able to claim back.

 

[hifly]

i think you will find its not just 73k in a year but if you go over 25% of that in any one qtr you will have to register, i also beleive there are problems if you are forced to register but invoiced people in that qtr without vat. it used to be the case that you had to re-invoice them with vat. This happened to me but that was 25 years ago so it may have changed.

I think what i am saying is get good advice.

 

[NozSpark]

But if you use a non VAT registered guy and you buy the materials there shouldn't be and difference in cost

 

[Andy™]

But if you use a non VAT registered guy and you buy the materials there shouldn't be and difference in cost

but they (contractor) may then give no warranty on materials since they didnt supply them

 

[Apache]

But if you use a non VAT registered guy and you buy the materials there shouldn't be and difference in cost

You say that but it's more hassle for the business and we mere plebs don't get the meaty trade discounts you do!

I am known in the builders merchants now and if you ask the price of something, look shocked, sharp intake of breath ask if they can do anything they'll knock as much as 25% of with no fight!

 

[NozSpark]

But I could get a cash sale made out with my discounts and you just pay me back

 

[Apache]

Next on my never ending list of jobs is to get a trade card at B&Q!

 

[Evans Electric]

Which is the same as a Screwfix card Patch . Called Trade Point. I got

 

[kerching]

Sellers....do 'em all cash in hand.....simples.............. :innocent :coat

 

[wozz]

HMRC will get funny about two companies one vat and one not, I have been asking my accountant similar questions, my biggest commercial customer cannot get VAT back so they dont care im not vat, if I land one of two jobs ive priced recently I will be apply for a VAT (exemption- possibly wrong wording) for that job on accountants advice as it will take me over threshold.

I will be avoiding being VATed for as long as possible in the current climate.

 

[sellers]

Sellers....do 'em all cash in hand.....simples.............. :innocent :coat

I don't understand? I'm not familiar with this process?