[Moderator David@stives]

I dont seem to be receiving emails today , anyone else having problems

[bluez]

lots of problems just not email ones

[macmac]

He may mean 11k anual & the work is done 4 weekly?

[Sean Dyer]

Sean

My figures wont be far wrong

if its 2 men then fair enough is it a partnership and they are puttin in there own return for half the money each?

If so if one man buys they have headache of employing and going vat registered over night

Plus the vat will be going out of the profit as its 90% residential and already at high prices so you couldnt really hit them for it

[Clive McDonald]

I wouldn't buy it. As the above posts speculate a lot of inconsistencies.Family biz 25yrs great, two men £70 ph even better, but it starts to fall down with the escort van and the back pack.For a value of 60k or above the due diligence required would look at these matters including vat thresholds.It may be that this is unsellable.

[Moderator David@stives]

Can't see where the fear of vat comes in, in business over £68k it becomes a fact of life, just as much as the air you breathe.

[luther1]

Indeed. Vat isn't the problem,its the higher earning income tax bracket that would bother me. The tax on his yearly turnover would be circa 50k. Add on top of that overheads and it doesn't look like such a lucrative business. His turnover may well be 11k per month,but what is the net profit?

[Clive McDonald]

The fear is that the guy turning over 61k is better off than the guy turning over 69k because 7k is suddenly gobbled in tax. To be better off a turnover of 90k is needed, and this gulf between 60 and 90 is a big one.

But in this instance although the figures were very high the impression was that this was not above the threshold and therefore any buyer would be wary of this. Not scared of a biz that qualified but wary of one that seemed to meet the criteria but wasn't.

Yes and what luther says.

[Moderator David@stives]

I still cant see your fears over vat, where you get £50k tax bill is beyond me.

£7k isnt swallowed up, you can claim back all your tax on all your bought goods.

unless you are actually vat registered it is hard for you to undersrtand.

[luther1]

Paying 40% tax on earnings over £34,800 would mean his tax on £100,000 above that would be £40,000 and the basic rate of 20% below the £34,800. Less overheads i know. Any decent account who sees those earnings would tell you to spend some money. An L reg Escort? Something doesn't stack up.

[Sean Dyer]

I still cant see your fears over vat, where you get £50k tax bill is beyond me.

£7k isnt swallowed up, you can claim back all your tax on all your bought goods.

unless you are actually vat registered it is hard for you to undersrtand.

so a turnover of 11k every 4 weeks which = 1925.00 in vat alone every 4 weeks

and you can claim that back ? which means your spending would have to equal your income to claim back the same amount!

Theres no fear there dave just the fact that it isnt as simple as "o buy my round its 11k every 4 weeks"

The buyer would have many things to consider ie a huge vat bill every 3 months!

I am not afraid of vat but unless you are really going to cane past the vat limit it is not worth earning 70, 000 and losing vat when you can do just under and make a good profit

[luther1]

If you earn't £140,000 per year, your tax bill would be £45,930. National insurance on top of that too.

[luther1]

I wouldn't want to pay the accountants bill on those earnings.

[cornelius jemmerso]

Paying 40% tax on earnings over £34,800 would mean his tax on £100,000 above that would be £40,000 and the basic rate of 20% below the £34,800. Less overheads i know. Any decent account who sees those earnings would tell you to spend some money. An L reg Escort? Something doesn't stack up.

ageing van - this would throw the tax man etc off his trail  ,could be true

[BVC]

ignore all previous posts, this has been posted on my mates cleanitup account.

i rent nearly half the round out (at a profit of 12k pa) and do about 7k with one other chap who invoices me for all work done. I have a kangoo and an escort van, and work pretty damn fast 3-4 days per week. my wife and i run the business as partners

[krave]

What area are you in?

[BVC]

east anglia

[bobby p]

have you a white Y reg van, working near to Nacton road this morning ? it was chilly today eh !!! 

[Moderator David@stives]

£140 k isnt the wage, that is the turnover, the wage would be about £65 k on that amount of turnover.

Even if £140k was the wage, it still is attractive despite the tax

[luther1]

As we are yet to find out what the expenses/overheads are and how much he wants for it then how can it be attractive when all the bottom line figures are conjecture?