One man bands and VAT ?

[Spiritof'76]

Just curious whether the majority of one man bands out there are registered for VAT or not ?

I've been trading 14 years since quitting BG and wasn't registered for the first year or two but have been ever since but am now thinking of reviewing the situation....... i think the turnover threshold was lower when i opted into it but higher now so getting out may be an option as i don't do big ticket stuff like bathrooms and i'm doing less heating installation work as it causes me too much physical pain these days so probably just one day boiler swaps from now on and will concentrate on boiler servicing and repairs etc.

I know i'll be paying more for diesel and van maintenance etc but figure i can make it up in that i can keep my boiler servicing price the same at £66 but keep all of it rather than give £11 to the vat man as my current charge is £55+vat

Anybody else de-registered for better or for worse ? 🙂

 

[Toxic Ted]

Sole trader no Vat...........cant be doing with vat.

 

[lame plumber]

one man band, no vat and boiler service £75, means work less for the same money, plus my customers are all happy at this pricing, lose a few and gain a few every year.

 

[townfanjon]

Yep another one here, pros and cons for vat , namely i have just bought a new van and had to stomach a few grand of vat. First new van in 7 years though.

 

[iain85]

I have deregistered before. Fairly straight forward process for the accountant and saves being a glorified unpaid tax collector.

 

[Chalked]

If your not doing new build or big material . Stay out or de register. Then charge the same as a vat registered business!

 

[Leo21]

Same here, sole trader no vat. It limits your supply and fit installs, there's none or little benefit to being vat registered in my mind.

 

[julesverne]

you could always make your missus a partner and then double your limit before being required to register for vat.

 

[Leo21]

you could always make your missus a partner and then double your limit before being required to register for vat.

Are you sure about that? That's a new one on me.

 

[rpm]

you could always make your missus a partner and then double your limit before being required to register for vat.

Thought it was based on company turnover not partners shares

 

[Ermintrude]

I'm sure it's turnover? Would need to be two separate companies completely

 

[julesverne]

Im on about sole trader partnerships not limited company

 

[julesverne]

It also seems i could be talking ballllocks i will look into this.

 

[Leo21]

Im on about sole trader partnerships not limited company

I thought it was about company turnover, regardless of partnerships etc.

 

[julesverne]

I thought it was about company turnover, regardless of partnerships etc.

yep think your right. I always had this in my mind as it makes sense to me. 2 sole traders become a partnership running a business so both have a vat threshold that could be combined. I really should get an accountant. Its about time i did.

 

[Leo21]

yep think your right. I always had this in my mind as it makes sense to me. 2 sole traders become a partnership running a business so both have a vat threshold that could be combined. I really should get an accountant. Its about time i did.

It would still be classed as one turnover, so theoretically the threshold would be higher if they stayed separate. But that's against the rules.

 

[Ray Stafford]

In the past, some of our customers would operate two business - a VAT registered one for larger jobs and anything where a business was the customer, and a small-works one for...well... small works. The latter would not be registered.

I think that the taxman got wise to that some time ago, and excercised the right to estimate back for 7 years and make a demand based on that.

 

[Destroyer2813]

In the past, some of our customers would operate two business - a VAT registered one for larger jobs and anything where a business was the customer, and a small-works one for...well... small works. The latter would not be registered.

I think that the taxman got wise to that some time ago, and excercised the right to estimate back for 7 years and make a demand based on that.

I've got a mate who still does it with two companies don't know how though

 

[lame plumber]

It also seems i could be talking ballllocks i will look into this.

I believe you are 🙂

 

[Spiritof'76]

All very interesting......think I'm leaning towards kissing the VAT goodbye 🙂 thanks chaps !