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Ian101

  • Posts: 7887
20% price increase for VAT
« on: November 22, 2016, 11:08:22 am »
Sold 90% of my residential rounds off 2 months ago so only going to effect about 80 customers but just gone vat registered (not flat rate)

£10 now £12
£15 now £18
ect ect

Commercials wont be bothered.

Was going to leave it till new year but never a good time for an increase.

May just stick em up a few quid without a vat explanation ??

Will see if any cancel  ;)


Spruce

  • Posts: 8454
Re: 20% price increase for VAT
« Reply #1 on: November 22, 2016, 11:22:31 am »
Sold 90% of my residential rounds off 2 months ago so only going to effect about 80 customers but just gone vat registered (not flat rate)

£10 now £12
£15 now £18
ect ect

Commercials wont be bothered.

Was going to leave it till new year but never a good time for an increase.

May just stick em up a few quid without a vat explanation ??

Will see if any cancel  ;)

My opinion. Some might conclude its a price increase. If you don't tell them then you will find it more difficult to ask for a price increase later. No?

Success is 1% inspiration, 98% perspiration and 2% attention to detail!

The older I get, the better I was ;)

sunshine windows

  • Posts: 2361
Re: 20% price increase for VAT
« Reply #2 on: November 22, 2016, 12:25:28 pm »
I agree with spruce. Without the explanation of Including VAT, all your customers will assume it's a price rise. Unless they actually read the bill and see your VAT number on it.

Well done,  by the way Ian. You've grown very well in a fairly short space of time by the sound of it. 👍
To climb mount fuji you must first find a path
(Swindon, Wiltshire)

www.sunshinewindowcleaning.co.uk
www.sunshinesoftwashing.co.uk

SeanK

Re: 20% price increase for VAT
« Reply #3 on: November 22, 2016, 12:28:16 pm »
When you buy a TV or similar does VAT make any difference on your decision to buy it or not ? not in the slightest
your only interest is in the overall price.
Just put your price up including any extra you would have been adding to it anyway, in other words I wouldn't have two price
rises close together.
As with every price rise they will either accept it or not.
The only thing about doing it at this time of the year is a lot of people will be spending more than they usually like to so
may get spooked, but there's never a good time to up prices.


8weekly

Re: 20% price increase for VAT
« Reply #4 on: November 22, 2016, 02:11:54 pm »
If you aren't going to turnover more than £230k this year you could have gone flat rate and offset the 9% difference between VAT in & out against the domestic work - or some of it antway.

Spruce

  • Posts: 8454
Re: 20% price increase for VAT
« Reply #5 on: November 22, 2016, 03:40:21 pm »
You don't have to be earning the VAT threshold to go VAT registered as far as I know. The threshold is 83k this year but you can chose when to go VAT registered.

If you are dealing with VAT registered companies they prefer to deal with VAT registered companies. It will also help when he buys new equipment/van as he can claim the VAT back.

Downside is the controls he needs to put in place to ensure he is paying the right amount of VAT and could be open to VAT inspections.
These are all time consuming and expensive as you generally have to pay an accountant extra to do it for you.

There are pros and cons to everything; what suits Ian may not suit me with a different customer base. He sold most of his residential and has the courage to go commercial - I don't.  ;D

Good for you Ian - much respect.
.

.

Success is 1% inspiration, 98% perspiration and 2% attention to detail!

The older I get, the better I was ;)

Og

Re: 20% price increase for VAT
« Reply #6 on: November 22, 2016, 04:02:27 pm »
We're doing this end of March. Going ltd also. Think I'm going to put prices up 10%. With the vat I can claim back on stuff we shouldn't have to take too much of a hit. Havnt put prices up since started three years ago.
Be interested to hear how you get re cancellations.

ascjim

Re: 20% price increase for VAT
« Reply #7 on: November 22, 2016, 04:23:11 pm »
I would just say its a increase due to running costs.

We are 12% flat rate, we don't buy enough to be 20%. We can still charge 20% and keep the change.

Mike55

  • Posts: 463
Re: 20% price increase for VAT
« Reply #8 on: November 22, 2016, 05:25:28 pm »
Sold 90% of my residential rounds off 2 months ago so only going to effect about 80 customers but just gone vat registered (not flat rate)

£10 now £12
£15 now £18
ect ect

Commercials wont be bothered.

Was going to leave it till new year but never a good time for an increase.

May just stick em up a few quid without a vat explanation ??

Will see if any cancel  ;)

Hi Ian - just wondered why you would choose to go full rather than flat rate VAT given the relatively low overheads v turnover in this business?  Unless your going up from the flat rate ofcourse....

Ian101

  • Posts: 7887
Re: 20% price increase for VAT
« Reply #9 on: November 22, 2016, 06:32:30 pm »
Sold 90% of my residential rounds off 2 months ago so only going to effect about 80 customers but just gone vat registered (not flat rate)

£10 now £12
£15 now £18
ect ect

Commercials wont be bothered.

Was going to leave it till new year but never a good time for an increase.

May just stick em up a few quid without a vat explanation ??

Will see if any cancel  ;)

Hi Ian - just wondered why you would choose to go full rather than flat rate VAT given the relatively low overheads v turnover in this business?  Unless your going up from the flat rate ofcourse....

tbh could have gone flat rate but after 150k u cant use flat rate scheme also cant claim for any vat back which I know would be offset by the difference from 12% and 20%  ... will be hitting 150k before too long as will be getting into supplying used vans with wfp systems as well as the day to day cleaning stuff and with used vehicles its another vat aspect as vat on profit if you go on the used car dealer margin scheme where u pay vat on the "profit" or charge vat on the whole price which in the case of used vans 99.9% are vat qualifying so just simple and easier to go "proper" vat reg now and move on and up

Ian101

  • Posts: 7887
Re: 20% price increase for VAT
« Reply #10 on: November 22, 2016, 06:35:54 pm »
When you buy a TV or similar does VAT make any difference on your decision to buy it or not ? not in the slightest
your only interest is in the overall price.
Just put your price up including any extra you would have been adding to it anyway, in other words I wouldn't have two price
rises close together.
As with every price rise they will either accept it or not.
The only thing about doing it at this time of the year is a lot of people will be spending more than they usually like to so
may get spooked, but there's never a good time to up prices.

good way of looking at it

supernova77

  • Posts: 3547
Re: 20% price increase for VAT
« Reply #11 on: November 22, 2016, 06:37:05 pm »
Ian

Are you mainly just commercial window cleaning now? Or do you offer other cleaning services to?

Andy

Ian101

  • Posts: 7887
Re: 20% price increase for VAT
« Reply #12 on: November 22, 2016, 06:39:22 pm »
Ian

Are you mainly just commercial window cleaning now? Or do you offer other cleaning services to?

Andy

easier to show you this  :)
www.zecs.co.uk

if anyone owns  the render picture I apologise as I borrowed it till I get some decent of my own oh and the tarmac one as well  ;D

8weekly

Re: 20% price increase for VAT
« Reply #13 on: November 22, 2016, 07:04:37 pm »
Sold 90% of my residential rounds off 2 months ago so only going to effect about 80 customers but just gone vat registered (not flat rate)

£10 now £12
£15 now £18
ect ect

Commercials wont be bothered.

Was going to leave it till new year but never a good time for an increase.

May just stick em up a few quid without a vat explanation ??

Will see if any cancel  ;)

Hi Ian - just wondered why you would choose to go full rather than flat rate VAT given the relatively low overheads v turnover in this business?  Unless your going up from the flat rate ofcourse....

tbh could have gone flat rate but after 150k u cant use flat rate scheme also cant claim for any vat back which I know would be offset by the difference from 12% and 20%  ... will be hitting 150k before too long as will be getting into supplying used vans with wfp systems as well as the day to day cleaning stuff and with used vehicles its another vat aspect as vat on profit if you go on the used car dealer margin scheme where u pay vat on the "profit" or charge vat on the whole price which in the case of used vans 99.9% are vat qualifying so just simple and easier to go "proper" vat reg now and move on and up
Ian, you can use flat rate up to £230k. The £150k is confusing and a red herring. If you THINK you'll go over £150k in the year you have to go full VAT, but my accountant told me that if you weren't SURE you would, go flat rate.

Ian101

  • Posts: 7887
Re: 20% price increase for VAT
« Reply #14 on: November 22, 2016, 11:08:31 pm »
Sold 90% of my residential rounds off 2 months ago so only going to effect about 80 customers but just gone vat registered (not flat rate)

£10 now £12
£15 now £18
ect ect

Commercials wont be bothered.

Was going to leave it till new year but never a good time for an increase.

May just stick em up a few quid without a vat explanation ??

Will see if any cancel  ;)

Hi Ian - just wondered why you would choose to go full rather than flat rate VAT given the relatively low overheads v turnover in this business?  Unless your going up from the flat rate ofcourse....

tbh could have gone flat rate but after 150k u cant use flat rate scheme also cant claim for any vat back which I know would be offset by the difference from 12% and 20%  ... will be hitting 150k before too long as will be getting into supplying used vans with wfp systems as well as the day to day cleaning stuff and with used vehicles its another vat aspect as vat on profit if you go on the used car dealer margin scheme where u pay vat on the "profit" or charge vat on the whole price which in the case of used vans 99.9% are vat qualifying so just simple and easier to go "proper" vat reg now and move on and up
Ian, you can use flat rate up to £230k. The £150k is confusing and a red herring. If you THINK you'll go over £150k in the year you have to go full VAT, but my accountant told me that if you weren't SURE you would, go flat rate.

got it .... cheers

NWH

  • Posts: 16952
Re: 20% price increase for VAT
« Reply #15 on: November 24, 2016, 04:17:31 pm »
After brexit you'll be back under the threshold lol

Ian101

  • Posts: 7887
Re: 20% price increase for VAT
« Reply #16 on: November 24, 2016, 06:06:12 pm »
apparently for "low cost traders" such as us lot the flat rate scheme is changing to 16.5%

Ian101

  • Posts: 7887
Re: 20% price increase for VAT
« Reply #17 on: November 24, 2016, 06:06:49 pm »
After brexit you'll be back under the threshold lol

according to some after brexit were all gonna be doomed  ;D

Og

Re: 20% price increase for VAT
« Reply #18 on: November 24, 2016, 06:51:18 pm »
Corporation tax down though.

Ian101

  • Posts: 7887
Re: 20% price increase for VAT
« Reply #19 on: November 25, 2016, 06:11:02 am »
Corporation tax down though.

yep watching for that one