Vat And business advice

[voivod]

Help

Right have had to get rid of business partner ...long story and not best pleased with him or his methods .

The firm is vat registered ...have been doing good till he started messing it about .
But now have been offered some subcontract work , good money but they wont pay vat. Is it worth setting up another company JUST to service the subcontract work? 3/4 days per weeks work
Would keep the VAT reg firm for ALL other customers.

Anyone done this?

 

[jtsplumbing]

Why wont they get involved with vat ?? those sort of questions you need to talk over with vat office as the last thing you want is them on your back

 

[Millsy 82]

I can't see how any company can sub out and not be at the vat threshold. I'm a one man band and I can see me hitting it if things keep going as they are.

 

[voivod]

they have fixed payments ...wouldnt be worth my while if vat taken off the payments

 

[Kev the gas]

I was told u cannot run 2 similair companies side by side ie in the same industry, as this would be seen as vat avoidance. A route you do not want to go down.

 

[woodsy]

Had the same conversation with my accountant last year as I've commercial customers who want me vat registered to claim back the vat on materials etc and domestic who hate paying vat on anything. Accountant said if using same van, tools etc in same industry, then you are asking for trouble.

 

[Chalked]

You can't have one vat registered business and one not, with the same van, tools etc.
I wouldn't be trusting the company that you are thinking of subbing to! Surely, they are vat registered if they have enough turnover to be subbing work out. If they are, then vat gorgeous them is no problem.
Check their company status and credit rating, as I smell a rat.

 

[tamz]

they have fixed payments ...wouldnt be worth my while if vat taken off the payments

If they have fixed payments you just add vat to whatever the amount is. Thats how it works.
Say the rate for whatever job was £500, you charge them £500 + vat ie £600, they claim the vat back so the rate they are paying is still £500.
Its just a paper shuffling exercise.
If they are not willing to do that don't work for them.

 

[voivod]

this firm pays holiday pay ...tax etc..suppose its for se60 boys really