[8weekly]

Did you just pass it on?

My plan is to simply add 20% and go on the flat rate scheme with a promise of no further increases in two years in a carefully worded letter.

What did others do?

[supernova77]

My plan is to simply add 20% and go on the flat rate scheme with a promise of no further increases in two years in a carefully worded letter.

Then you might find that you loose some customers and that brings you back below the VAT threshold 

I'm not registered... But when I do I will probably just increase all prices by 5% - 10% and swallow the rest... I wouldn't mention VAT to any customers.

Andy

[Clever Forum Name]

Glad you asked this.

Could someone cough smudger cough enlighten us please. As much info as possible would be great. He's the only chap I know on here that's vat reg really (big domestic rounds)

[deeege]

Funny how with all those on here doing £400 days or £60 p/h they rarely get involved in these VAT discussions, wonder why that is? 

[Jack Harris]

most are full of it thats why

[Rogue Trader]

i did it in exactly the same way that you are proposing, and i did lose a few customers and the ones i lost were the dregs of my round anyway so if anything it was a good thing , i didnt add it to all customers though, some who were priced really well i swallowed it. I had quite decent prices in the first place so i could afford to swallow a bit. I was surprised at how well the customer base as a whole took it, most people who can afford to have their windows cleaned know a bit about business and if anything they applaud your growth and success even if it means it costs them a few quid more. For them the price increase buys them security in the knowledge that you are a bonafide business and not some shmuck that will be unreliable and turn up as and when you feel like it.

[8weekly]

My plan is to simply add 20% and go on the flat rate scheme with a promise of no further increases in two years in a carefully worded letter.

Then you might find that you loose some customers and that brings you back below the VAT threshold 

I'm not registered... But when I do I will probably just increase all prices by 5% - 10% and swallow the rest... I wouldn't mention VAT to any customers.

Andy

I will tell them, but with a letter. Some exceptionally well priced large jobs I will absorb, but 90% will get a price rise. If it drops below it will only be temporary so I'm not too concerned about that.

[8weekly]

i did it in exactly the same way that you are proposing, and i did lose a few customers and the ones i lost were the dregs of my round anyway so if anything it was a good thing , i didnt add it to all customers though, some who were priced really well i swallowed it. I had quite decent prices in the first place so i could afford to swallow a bit. I was surprised at how well the customer base as a whole took it, most people who can afford to have their windows cleaned know a bit about business and if anything they applaud your growth and success even if it means it costs them a few quid more. For them the price increase buys them security in the knowledge that you are a bonafide business and not some shmuck that will be unreliable and turn up as and when you feel like it.

That is pretty much word for word how I plan to do it and anticipate it going.

[Rogue Trader]

The other thing i forgot to say is that if you employ the cost of you going VAT registered is actually not yours but your staff. (unfortunately for them) The target that they have has to go up by 20% in order for them to turnover the same amount of money. They will need to do £180 instead of £150 or £240 instead of £200 etc. Unfortunately if you are still on the tools this will apply to you too until you move away from the coalface..... But for any new starters that you have they dont know any different and their turnover and or earnings will always be calculated after 20% has been taken off, for them that is simply how things are, no problems

[8weekly]

The other thing i forgot to say is that if you employ the cost of you going VAT registered is actually not yours but your staff. (unfortunately for them) The target that they have has to go up by 20% in order for them to turnover the same amount of money. They will need to do £180 instead of £150 or £240 instead of £200 etc. Unfortunately if you are still on the tools this will apply to you too until you move away from the coalface..... But for any new starters that you have they dont know any different and their turnover and or earnings will always be calculated after 20% has been taken off, for them that is simply how things are, no problems

I don't have anyone yet, so I am flat out anyway but I have someone (daughter's partner) due to start in February, but may have to take someone on before then as I am likely to be 4/5 weeks behind by then.  (I anticipate VAT threshold being hit the moment someone starts).

[Smudger]

Hello -

We reg vat from April this year, we knew a few months before that if things continued then this would be necessary, we do price reviews EVERY 12 months, so most got a rise in 2013 and this year we sent our usual price review out and most went up  by what we felt was fair - but we did stipulate on the letter that we will endevour to ensure there are no further prices reviews until 2016.

This rise helped offset some of the vat we are on the FRS at 12% (pay 11% in first year) obviously it did not cover all of it, we have also this year picked up some regular commercial clients (schools/care homes) which you charge 20% vat too but you pay out 12% - so if you can pick up a few vat reg commercials that will also help.

No two ways about it, initially it does effect your profits especially when you are domestic based, but for us it was a necessary step to continue our growth. Don't be frightened about it the FRS is very easy to use and do vat returns on.

Mrs Smudger

[S.A.J]

Start pricing work up with VAT in mind  that's what we did! and put that extra money in another account, this will be your VAT account and never spend it on anything other than VAT 

[richywilts]

question to the guys who have made the jump

what have been the benefits of going vat reg

have you made more profit since going vat reg than before being vat reg

have you picked up more work since being vat reg

[SeanK]

question to the guys who have made the jump

what have been the benefits of going vat reg

have you made more profit since going vat reg than before being vat reg

have you picked up more work since being vat reg

Its not about making a jump it about having a turnover of more than £79000 you don't have a choice.

[SeanK]

Funny how with all those on here doing £400 days or £60 p/h they rarely get involved in these VAT discussions, wonder why that is? 

In what category would you put the guy who started this post, on the verge of £79000 working on his own.

[PoleKing]

question to the guys who have made the jump

what have been the benefits of going vat reg

have you made more profit since going vat reg than before being vat reg

have you picked up more work since being vat reg

Its not about making a jump it about having a turnover of more than £79000 you don't have a choice.

It's £81k this year.
I heard (though can't confirm) it'll be £85k next year.

[Don Kee]

Funny how with all those on here doing £400 days or £60 p/h they rarely get involved in these VAT discussions, wonder why that is? 

In what category would you put the guy who started this post, on the verge of £79000 working on his own.

I was thinking that...

Not doubting the guy but thats some serious turn over working on your own!!

[PoleKing]

question to the guys who have made the jump

what have been the benefits of going vat reg

have you made more profit since going vat reg than before being vat reg

have you picked up more work since being vat reg

Its not about making a jump it about having a turnover of more than £79000 you don't have a choice.

It's £81k this year.
I heard (though can't confirm) it'll be £85k next year.

Personally I don't believe that but if there are then they would be in a very small minority, strange how they all
find their way onto this forum.

Believe what?
 The first bit is fact. The second bit I've said was only what I've heard

[SeanK]

question to the guys who have made the jump

what have been the benefits of going vat reg

have you made more profit since going vat reg than before being vat reg

have you picked up more work since being vat reg

Its not about making a jump it about having a turnover of more than £79000 you don't have a choice.

It's £81k this year.
I heard (though can't confirm) it'll be £85k next year.

Personally I don't believe that but if there are then they would be in a very small minority, strange how they all
find their way onto this forum.

Believe what?
 The first bit is fact. The second bit I've said was only what I've heard

Was replying to the bit you deleted, not what you said about the vat.
I wasn't saying that you hadn't heard people boast about these type of earnings, I'm saying I don't believe these type
of people.

[deeege]

Funny how with all those on here doing £400 days or £60 p/h they rarely get involved in these VAT discussions, wonder why that is? 

In what category would you put the guy who started this post, on the verge of £79000 working on his own.

Good on him if he's getting there whilst working alone, that's some going and 100% not achievable on domestics where I work.

Fwiw my post was a bit tongue in cheek and wasn't aimed at 8weekly. There are a few Walter Mittys on here that like to bull**** about earning big money but I personally wouldn't put 8weekly in that category.