[richywilts]

i may be stupid and some are prob gona laugh but i honestly didnt know that every invoice or job you do is classed as a sale

been in with the new accountant all day at my unit he said every job you do is classed as a sale so maybe this is where my opinions have been differing with others

i honestly thought that level of vat was taken from what you actually take after each job is cleaned and paid for not for every job that is cleaned

oh well you learn something everyday, finance side of things have never been my strong point of all the bookeepers etc i have used some accountancy firms have never got this message across, or the business coach i have used

im completely taken a back by it, i know you can use bad debtors against this figure

[Richard iSparkle]

i may be stupid and some are prob gona laugh but i honestly didnt know that every invoice or job you do is classed as a sale

been in with the new accountant all day at my unit he said every job you do is classed as a sale so maybe this is where my opinions have been differing with others

i honestly thought that level of vat was taken from what you actually take after each job is cleaned and paid for not for every job that is cleaned

oh well you learn something everyday, finance side of things have never been my strong point of all the bookeepers etc i have used some accountancy firms have never got this message across, or the business coach i have used

im completely taken a back by it, i know you can use bad debtors against this figure

i'm with you on that richy.  didnt know that either and seems strange. 

[keyser soze]

richy are you vat reg

[richywilts]

no but i think i should be ok obv we have some quite big weeks thru the summer but we have also had some small weeks and weeks where not much been done so fingers crossed it should be below the  70000

plus i didnt gain most of the work till july-sept

hes taken every bit of paper work with him today anyway to go thru everything

[keyser soze]

ask about setting a second company up( its legal) to keep your level below the vat threshhold sounds as if theres twice as much work but its only splitting what you have. its worth it to save vat surcharge you have to charge to custys and making yourself too expensive. a 12 job will become 14.40 and so on, vat  for us guys is not an attractive option .

[Perfect Windows]

ask about setting a second company up( its legal) to keep your level below the vat threshhold sounds as if theres twice as much work but its only splitting what you have. its worth it to save vat surcharge you have to charge to custys and making yourself too expensive. a 12 job will become 14.40 and so on, vat  for us guys is not an attractive option .

It would be a major business error to follow this advice.

It's not legal.

Vin

[keyser soze]

ask about setting a second company up( its legal) to keep your level below the vat threshhold sounds as if theres twice as much work but its only splitting what you have. its worth it to save vat surcharge you have to charge to custys and making yourself too expensive. a 12 job will become 14.40 and so on, vat  for us guys is not an attractive option .

It would be a major business error to follow this advice.

It's not legal.why is not legal my friend

Vin

[keyser soze]

ask an accountant about it. some people have multiple companys ,

[Perfect Windows]

ask an accountant about it. some people have multiple companys ,

Not in the same business in order to stay below the VAT limit, they don't.

Vin

[Frankybadboy]

ask about setting a second company up( its legal) to keep your level below the vat threshhold sounds as if theres twice as much work but its only splitting what you have. its worth it to save vat surcharge you have to charge to custys and making yourself too expensive. a 12 job will become 14.40 and so on, vat  for us guys is not an attractive option .

some people have no idea.

the tax man would love you

[Lee Pryor]

what rubbish.

your accountant needs the sack mate. how can a job be a "sale" untill any money changes hands. rubbish.

Vin is right. you cannot set up other accounts to get around vat.

However there are 2 ways you can

1. if you set up other companies they cannot have ANY and I stress ANY shared resources. for example if you had 2 window cleaning business and there were totaly separate but only shared so much as a printer in your office that would not be alowed. so you would have to have double of everything.

2 you can be a sole trader and "incorperate" a Ltd company. for example I am a sole trader. I am Lee Pryor trading as Pryors window cleaning. I am franchising my business at the moment and am setting up Pryors window cleaning Ltd to be just for the franchising.

I am vat registered but my incorperated Ltd company wont need to be untill it hits the threshold

[George P]

ask an accountant about it. some people have multiple companys ,

usually in differant trades or from seperate business address, must be completly seperate, no same tools, van or staff etc, always amazes me when people want to progress but think they can get out of the boring stuff like vat, your either running a business or not,

[mlscontractcleaner]

what rubbish.

your accountant needs the sack mate. how can a job be a "sale" untill any money changes hands. rubbish.

Vin is right. you cannot set up other accounts to get around vat.

However there are 2 ways you can

1. if you set up other companies they cannot have ANY and I stress ANY shared resources. for example if you had 2 window cleaning business and there were totaly separate but only shared so much as a printer in your office that would not be alowed. so you would have to have double of everything.

2 you can be a sole trader and "incorperate" a Ltd company. for example I am a sole trader. I am Lee Pryor trading as Pryors window cleaning. I am franchising my business at the moment and am setting up Pryors window cleaning Ltd to be just for the franchising.

I am vat registered but my incorperated Ltd company wont need to be untill it hits the threshold

Take some advice from this fella, he seems to know his stuff

[Rogue Trader]

Your accountant is wrong , taking your figures which would include your VAT threshold from monies recieved rather than jobs invoiced is very common and most businesses including mine do it and it is called cash accounting. In our business why would you not do this?

You cannot split your business to stay under the VAT threshold. Regardless of whether the business does or doesnt share any resources if the businesses is linked and is seen to offer similar services under the same management then they will come down on you.

Many people do it though and it is ultimately up to you though my view is if you are a growing business why waste your time and effort trying to avoid this threshold surely better to embrace the inevitable and put that time and effort in growing and improving a profitable business.

[richywilts]

what rubbish.

your accountant needs the sack mate. how can a job be a "sale" untill any money changes hands. rubbish.

Vin is right. you cannot set up other accounts to get around vat.

However there are 2 ways you can

1. if you set up other companies they cannot have ANY and I stress ANY shared resources. for example if you had 2 window cleaning business and there were totaly separate but only shared so much as a printer in your office that would not be alowed. so you would have to have double of everything.

2 you can be a sole trader and "incorperate" a Ltd company. for example I am a sole trader. I am Lee Pryor trading as Pryors window cleaning. I am franchising my business at the moment and am setting up Pryors window cleaning Ltd to be just for the franchising.

I am vat registered but my incorperated Ltd company wont need to be untill it hits the threshold

LEE THATS WHAT I THOUGHT MATE HOW CAN IT BE A SALE IF MONEY HASNT BEEN EXCHANGED

[Rogue Trader]

Hello Lee ,

Good luck with the franchising! It can be a rocky road though , you should speak to Matt at Matt's mowing , im sure you have seen his vans , he is a home sevices company in our area and he has done a lot in the franchising field and would be an excellent resource for you.

[Dean Taberner]

Something is wrong there richy,

We are VAT reg but only pay the VAT on invoices paid,

I don't personally deal with it the mrs does but I think its called cash accounting.

I'm already distressed enough with the window cleaning side of it. :-o

Dean.

[rosskesava]

Why not just go for flat rate VAT?

It's simpler. I think it's 12%.

[George P]

window cleaning can be so distressing  sorry dean had to pinch your line

[Dean Taberner]

window cleaning can be so distressing  sorry dean had to pinch your line

Haha