[benny donnelly]

Just really want to put this out there see what advise I get...

At present I have a part time lad who works 3 days a week and more if I need him, I have built and am still building my round up and have to date nearly a full 4 weekly cleaning cycle were I am flat out weather depending...

Now my part time lad is a gem as he hasn't let me down yet, is 100% to deal with, is good with customers and has even got me quite a few jobs...

What I'm thinking is if I sent him out in a van of his own and had the 2 of us cleaning I could really build up my business a lot quicker, weed out the hassle customers and focus more on the good ones...

If I was to do it I would go over the vat threshold therefore having to increase prices, extra admin, accountants fees, running costs etc and I'm just thinking if I was to weigh it all up am I better staying as I am or would I be mad not to plough on and go for it?

Any words of wisdom for me? 

[richywilts]

my advice from experience would be weed out the crap first build up where your round is 95 % decent customers for a good year or two get some savings behind you, keep looking after your vans, keep marketing and then when its too much and business is so good then make a decision

[PoleKing]

Don't 'just cross' it.
£100k+
I'm not VAT registered and don't want to be but that's what I'd do.

[a900]

If turnover is approaching vat threshold I would focus on increasing the profit
Margin and avoid going over.

[HampshireWindowCleaning]

If you go over the vat threshold, do you pay vat on just the turnover that is past the threshold, or do you have to pay vat on the entire turnover, i'm guessing it's the latter

[dave0123]

you charge 20% on all jobs you complete when you are vat registered its not really based on turnover.

so it a job quoted £10 + vat would be £12

[steve rix]

Just pocket all the cash!!

[johnny bravo]

only you know how much you make.      what would the vat be for   xtra washing up liquid.  if I told my customers im going to charge vat,   I think theyed drop me.   unless you charge commercial  business es

[one eyed window cleaning]

Is it possible to split the business in to two, one comercial and the other domestic? Somebody on here must now , if you can you could keep the domestic under the vat threshold. And as for the comercial they are more than likely to be  registered vat so could clame it back ;-)

[telfordwindowclnr]

Interesting thread this.

I had a meeting last with my accountant as the solar stuff is taking off so much, I will hit the VAT threshold shortly.

There are comments above which say it is not based on turnover, my accountant says it is. He says it is if you go over 77K during any 12 month period you MUST go
VAT registered. Can anyone explain the discrepancy? Thank you.

He also advised I would be better having a separate solar company and go VAT registered from day 1.

[Rob_Mac]

Steve

You are right and on every sale you have to add 20% but you can also use the 20% on purchases to reduce your VAT bill every quarter.

I would say to anyone who is getting near -  get an accountant and let them help you through it. Mine has found an invoice for £3000.00 that I thought had been paid. he is worth every penny I pay him!!!

Rob

[Rob_Mac]

Splitting a domestic & commercial window business wont happen, it is an extremely thin line.

Steve will get away with splitting the solar stuff from his window cleaning because there is enough difference between them

Rob

[8weekly]

Splitting a domestic & commercial window business wont happen, it is an extremely thin line.

Steve will get away with splitting the solar stuff from his window cleaning because there is enough difference between them

Rob

Maybe. Debatable though or else we could seperate out gutter clearance, fascia cleaning etc.

[Rob_Mac]

I agree and he would need to take advice. The HMRC people will pull your life apart if they think they have reason to. I know someone who has been investigated - they want to know absolutely everything and wont be shut up easily.

Rob

[one eyed window cleaning]

Or could your wife, partner help to split the business ? A question for a good account.

[one eyed window cleaning]

I agree and he would need to take advice. The HMRC people will pull your life apart if they think they have reason to. I know someone who has been investigated - they want to know absolutely everything and wont be shut up easily.

Rob

True I have a mate who paid a bit of cash and booked it, the tax man was bang on him .

[Rob_Mac]

I asked that one when I flew over the threshold and had to go back to catch up. My slip left me having to find a substantial sum and caused some right headaches.

Don't go over the threshold and ignore it, thinking you can level it up the following month, it doesn't work that way. Once your going over you have to go LTD, on a rolling year (as has been said).

You need to have separate everything to do that, vehicles, kit and paperwork etc. I asked my accountant about all of the above because I just didn't know, even then they may take a dim view of the arrangement.

I wouldn't give them any reason to look into my affairs - anymore than necessary. I am sure people do do the wife & husband thing but too close for me.

The positive side of going LTD for me is that it is like a badge, that you have got to a point where the larger commercial expect to be dealing with other limited companies.

I don't know any sole traders on my works, there are subbies everywhere but the main contractors are all Limited.

Rob

[niceandclean]

Splitting a domestic & commercial window business wont happen, it is an extremely thin line.

Steve will get away with splitting the solar stuff from his window cleaning because there is enough difference between them

Rob

Not if he is using the same van and equipment, same business premises ect ect as his window cleaning!

[Rob_Mac]

I am sure Steve will be taking advice from his accountant on this. I would never run any similar business without splitting it completely, I agree with you. Sorry I didn't dot my I's and cross my T's!!

Rob

[PoleKing]

OEWC-I have just asked about the husband/wife split.
Even asked if on paper the wife could be a bookkeeper.
It was a very firm no.
You can try it but her majesty's finest will decide against it being legal and make you pay everything they think they are owed.
There was a case last year where they did it and now the precedent has been set.

Just MO but even Solar Steve may struggle to split. It could be argued that its all the same equipment being used and the only difference is the item being cleaned. I'm sure he'll take advice on it though.
Again JMO but the same could be said for fascia cleans...