Vat

[Flanners]

Starting my first year as VAT registered! How do you guys find it pricing against the non registered?

What's your quotes accepted percentage like?

Just interested!

Cheers

 

[tamz]

On private work you are at a disadvantage straight away even though you are claiming vat back.
Say the materials are £1000 + vat and the labour is £1000. Non registered guy cost is £2200 To be the same cost the registered guy would have to charge £830 odds for labour to work out about the same so you have had to drop £170 from your labour just to stay in the game.
It is a bit different in reality as you claim vat back on other expenses but you will still be out of pocket by a good bit. You will realise this every 3 months when you are handing over £XXXX to the vat man and your new hobby becomes find the receipt.
Doesn't make any difference if you do contract work for another company as they claim it back anyway.

 

[brightcrow]

Guess it depends on your acceptable turnover, i find in order to make a reasonable living down my way you need to be VAT. Not been a real problem for me and in fact a lot of customers seem to see it as recognition that your business is big enough or that you are busy enough etc. Not really noticed the loss of many quotes to this but to be honest if the customers are likely to penny pinch like that then chances are their not the best to work for. Biggest problem for people near me seems to be getting caught out for trying to make too much on materials!