Oh fair - as far as I'm aware the flat rate VAT scheme ends at £150k turnover. But yes you're right it's 2% revenue which can be easily made up of poles, cleaning fluid etc
No equipment and poles etc do not count they're Capital items unless you throw them away within a year and you don't not receive funds. Deliberately purchasing polls to chuck em after a year is a false economy and within your account's they're easily identified as capital items.
Every business is different whether you qualify for the flat rate scheme you should be able to find that out by asking your accountant ( everyone tends to get one once they creep around the 85k mark )
That way you will know exactly.
Anyhow Vat is challenging and everything gets more serious that extra hour at work most times to make up that little bit more profit you're always chasing profit net of vat eventually your mind will will automatically deduct a certain percentage of your daily turnover and you'll become better at it.
Couple of other things.
If you got a nice little bit of commercial work (wish I had more) you will really enjoy adding VAT to the invoice
In my case I didnt even mention I was going vat and supprised them with the vat not a Dickie Bird
Because they just offset it againts thier own vat bill. If you have 30% commercial and you genuinely are eligible for the flat rate you'll be making an extra 9% on that particular 30% of work in the first year as you will charge 20 but pay 11
Possibly keeping you on an even Keel on the other domestics !!
Also You won't necessarily need to up your prices at all instead you can just focus on volume and amount per day so all you have to do is deduct the vat amount you'll be paying from the turnover of your day rate and figure out if it's still profitable long term.
Hope this helps, first thing's first definitely hire a good accountant who is recommended ideally
Who can hopefully give you sound professional advice.
