[Shrek]

Another thing for me is that if he drops it to 45k and I have to put customers up they'll know I earn over 45k. I don't really want them knowing that. Right now they think I scrape by and I like it that way.

If they ask , then you could say you employ a couple of lads who do commercial work for you? 

[Marc Stock]

Another thing for me is that if he drops it to 45k and I have to put customers up they'll know I earn over 45k. I don't really want them knowing that. Right now they think I scrape by and I like it that way.

If they ask , then you could say you employ a couple of lads who do commercial work for you? 

Id tell em its none of their damn business. You work hard and you earn.

[clarkson]

Really don't see what all the fuss is. Lots of window cleaners are vat registered. We have been for 10 years. No problems. I think it's a good thing to have a totally even playing field for everyone. As with most things it's just the fear of the unknown that worries people.

Yes people will start having to run things more like a proper business. Lots you can do to balance the money back to you, go ltd and do away with n.i and pay less income tax with dividends. Only put your price up by 10%, swallow the other 10% but even that out with claim backs on kit, fuel ect.

Exactly  lee it's not to be scared of , you charge the VAT to the customer.  You will loose some in the short term but everyone will be in the same boat so customers will work out that there house is going to cost a few quid more .

It evens the playing field as those of us that are vat registered have been competing with those that are not for years.  So this will be a good thing , the people who will really struggle are those drastically undercharging in the first place. As there customers  will be more sensitive to the rise.

I think you will just have to take the time to explain it properly , the same as if you are switching the round from  trad to  wfp. You can't just do it , you tell them what's happening and why.

Remember if this does happen  it will be all over the news and papers so many will be aware of it .

John




As for going collecting more cash, you can't rent or buy a house based on cash or a decent car or holiday. You can't have a decent life based on cash. More will get done by the tax man and vat avoidance is about the worst thing to be hit with.

[Slacky]

You could use it to your advantage, by putting your prices up at the same time and going 8 weekly, indicating (as a sweetener)  to the customer that they’re effectively getting more for their money, whilst you get more money for the same work. It’d only need a half decent worded note. 

[Marc Stock]

Ok Chaps.

Budget day...lets see what happens.

[Arnold Palmer]

Ok Chaps.

Budget day...lets see what happens.

Nowt.

[dazmond]

i dont reckon anything will happen in regards to VAT.if it was it would be all over the news by now.

we all pay enough VAT as it is.im still coming to terms with forking out nearly £750 in VAT just to have a diesel heater fitted in my van.

[davids3511]

You could use it to your advantage, by putting your prices up at the same time and going 8 weekly, indicating (as a sweetener)  to the customer that they’re effectively getting more for their money, whilst you get more money for the same work. It’d only need a half decent worded note.

A nice note and 300 more customers unless you plan on sitting at home half the time.

[Slacky]

You could use it to your advantage, by putting your prices up at the same time and going 8 weekly, indicating (as a sweetener)  to the customer that they’re effectively getting more for their money, whilst you get more money for the same work. It’d only need a half decent worded note.

A nice note and 300 more customers unless you plan on sitting at home half the time.

It’s an option. Most guys on here probably wouldn’t worry too much if they lost some work.

Do the maths.

[davids3511]

You could use it to your advantage, by putting your prices up at the same time and going 8 weekly, indicating (as a sweetener)  to the customer that they’re effectively getting more for their money, whilst you get more money for the same work. It’d only need a half decent worded note.

A nice note and 300 more customers unless you plan on sitting at home half the time.

It’s an option. Most guys on here probably wouldn’t worry too much if they lost some work.

Do the maths.

Surely the maths says if you double the frequency you need twice the customers. No? Even 6 weekly to two monthly requires a third more customers. I never mentioned loosing work and one third to half isn't 'some'.

[davids3511]

No change!

[The Jester of Wibbly]

Well there you have it. No change for at least another 2 years

[Stoots]

Thanks guys.

 Please revive this thread in 2 years for the next debate.

[tlwcs]

Damn it. I registered at 12 o'clock to beat the rush 

[Dry Clean]

You could use it to your advantage, by putting your prices up at the same time and going 8 weekly, indicating (as a sweetener)  to the customer that they’re effectively getting more for their money, whilst you get more money for the same work. It’d only need a half decent worded note.

A nice note and 300 more customers unless you plan on sitting at home half the time.

It’s an option. Most guys on here probably wouldn’t worry too much if they lost some work.

Do the maths.

Surely the maths says if you double the frequency you need twice the customers. No? Even 6 weekly to two monthly requires a third more customers. I never mentioned loosing work and one third to half isn't 'some'.

Only if you want to fill the spare time, example 4 weekly at £20 could become 8 weekly at £30 which means for 6 cleans you
get £180 instead of 12 cleans for £240 therefore you have a shortfall £60 a year per customer to make up.
If you converted all your 300 customers to 8 weekly that would save you 1800 cleans a year but you would only need another 600 cleans a year ( 100 extra 8 weekly customers) to be exactly where you are now.
Same money for 1200 less cleans.

[dd]

Thanks guys.

 Please revive this thread in 2 years for the next debate.

Please do not. This simply will never happen due to massive backlash if it did (amongst other reasons).

Complete waste of time thread IMO.

[Walter Mitty]

As such changes normally occur on April 6th, I suppose it's safe to assume that no-one under £85k will be coerced into VAT registration before April 2019 at the very earliest (if ever).
However, it shows how the party of low taxation is starting to think - and presumably the other lot too should political upheaval see them elected.  So, it's time for me to start trying to be one jump ahead in case such a change occurs.  After January, time to start seeking two types of work (1) More commercial work where VAT isn't normally an issue (unless working for a small business who use simplified VAT). (2) Residential work where I feel able to charge 20%+ more than I would normally, so that I'm in a better position to absorb some of it if/when V-day arrives.
I consider myself on notice.

[Slacky]

You could use it to your advantage, by putting your prices up at the same time and going 8 weekly, indicating (as a sweetener)  to the customer that they’re effectively getting more for their money, whilst you get more money for the same work. It’d only need a half decent worded note.

A nice note and 300 more customers unless you plan on sitting at home half the time.

It’s an option. Most guys on here probably wouldn’t worry too much if they lost some work.

Do the maths.

Surely the maths says if you double the frequency you need twice the customers. No? Even 6 weekly to two monthly requires a third more customers. I never mentioned loosing work and one third to half isn't 'some'.

Heres an example, albeit hypothetical now we know there will be no chance of this happening.

Lets say you have a customer who you clean every 6 weeks and the charge is £30.00.

All of a sudden the chancellor decides we need to be charging 20% V.A.T. on the services we offer. The house in question would therefore attract an additional £6.00 to be charged. Making a total of £36.00.

Now if you increased the frequency from 6 weeks to 8 weeks and also made it clear the charge would have to be increased by £10.00 to cover the new tax your work is attracting and also you tell the customer because of the increased frequency. However, what is important is that you'd have to explain that the cost per week the customer is paying despite the tax and other charges would sell be the same.

£30.00 every 6 weeks is £5.00 per week.

£40.00 every 8 weeks is £5.00 per week.

Focus on that point when you tell your customer, focus on the benefit to them, and you get to cover the new V.A.T. rule and get a price increase of 12.5% thrown in to the bargain.

The principle remains the same regardless of your current frequency. You could do this now without worrying about the VAT but just tell them you're changing the frequency and up your price. Cleaning 8 weekly compared to 6 weekly makes very little difference. Negligible.

[Arnold Palmer]

Thanks guys.

 Please revive this thread in 2 years for the next debate.

Please do not. This simply will never happen due to massive backlash if it did (amongst other reasons).

Complete waste of time thread IMO.

Waste of time thread? On clean it up?

How very dare you.

[Don Kee]

You could use it to your advantage, by putting your prices up at the same time and going 8 weekly, indicating (as a sweetener)  to the customer that they’re effectively getting more for their money, whilst you get more money for the same work. It’d only need a half decent worded note.

A nice note and 300 more customers unless you plan on sitting at home half the time.

It’s an option. Most guys on here probably wouldn’t worry too much if they lost some work.

Do the maths.

Surely the maths says if you double the frequency you need twice the customers. No? Even 6 weekly to two monthly requires a third more customers. I never mentioned loosing work and one third to half isn't 'some'.

Heres an example, albeit hypothetical now we know there will be no chance of this happening.

Lets say you have a customer who you clean every 6 weeks and the charge is £30.00.

All of a sudden the chancellor decides we need to be charging 20% V.A.T. on the services we offer. The house in question would therefore attract an additional £6.00 to be charged. Making a total of £36.00.

Now if you increased the frequency from 6 weeks to 8 weeks and also made it clear the charge would have to be increased by £10.00 to cover the new tax your work is attracting and also you tell the customer because of the increased frequency. However, what is important is that you'd have to explain that the cost per week the customer is paying despite the tax and other charges would sell be the same.

£30.00 every 6 weeks is £5.00 per week.

£40.00 every 8 weeks is £5.00 per week.

Focus on that point when you tell your customer, focus on the benefit to them, and you get to cover the new V.A.T. rule and get a price increase of 12.5% thrown in to the bargain.

The principle remains the same regardless of your current frequency. You could do this now without worrying about the VAT but just tell them you're changing the frequency and up your price. Cleaning 8 weekly compared to 6 weekly makes very little difference. Negligible.

Whilst I agree on the whole, I’m not sure selling as what is basically “you’ll get less cleans a year for the same money” is the best way about it...