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Having for the last thirty years + been a loyal service agent for a large European Manufacturer (up market) I have just been given three months notice of contract termination, (as has another agent in this area).
Apparently The company “Suits” saw how good our results were and have decided that they wanted all of it for themselves.Anyway, I probably now could trade without vat registration, I know that Martin has recently gone down this road but cannot find his posting, just wondered what the problems were.
Ref first paragraph normally when I condemmed a machine I would advise the customer to purchase a replacement of the same make.
NO MORE, REVENGE IS SWEET condemmed a machine today sold my first ISE – delivering Thursday
Re: VAT De-registration
I de-registered about 4 years ago after being Vat registered for almost 20 years, it felt like a huge weight had been lifted of my back. 8) 🙂
Jim.
Re: VAT De-registration
sparkey wrote:Anyway, I probably now could trade without vat registration, I know that Martin has recently gone down this road but cannot find his posting, just wondered what the problems were.
Yes indeed I de-registered way back in February 2005 and have never looked back. The process was all too simple too for me as I simply filled out their de-registration forms stating when I intended to cease with VAT, and the whole thing was rubber stamped without any further communication from them……easy! 🙂
As long as you are sure your gross monthly trading totals will not come anywhere near the current ‘VAT Threshold limits’ you are in the clear. 😉 (I make sure mine don’t – on paper at least). 8)
The funny thing is you know?……..since de-registering, I never seem to take any cash calls? It’s all cheques and credit cards these days?…..now how weird is that eh? 😆
Re: VAT De-registration
I de-registered from VAT also about a year ago.
One thing to watch if you are going to do it is the value of your assets on which you have claimed back the tax on.
My accountant advised me that as long as the tax owed was under £1500 that the revenue would not claim it back.
I held back for a while as I had recently bought a new van and claimed back the VAT.
I don’t sell appliances in order to keep the turnover down as I am close to the threshold with the repair work alone.I was recently forced to have a week off in Spain because I had banked too many cheques in the last quarter 😉
SteveRe: VAT De-registration
Be carefull, I de registered about 10 years age after subing to Whirlpool, and it cost me a about £800. My accountant eplained that I had to pay back a portion of vat which I had claimed against vehical and other equipment which I was still using at the time of de registration. Still think it was the best thing i ever did though, £800 well spent.
Goose
Re: VAT De-registration
Hi
Just heard from local filling station, that from next january only proper invoices for fuel will be accepted by the vat man, till receipts will not be accepted. So you will need an account with garage or use a fuel card.
Mike
Re: VAT De-registration
Not strictly true Washerman, the regulation will change to prevent handwritten VAT invoices for fuel purchases being used. Most stations will now produce a terminal printed one usually on thermal paper and these are perfectly acceptable and will remain so.
The idea is to prevent the local friendly garage handing out a stack of preprinted ones to one of his dodgey mates to claim his expenses back.
The use of a fuel card or an account facility is still not needed although fuel cards are by far the easiest way to deal with fuel purchases if your organisation is of sufficent size to warranty it.
Regards all
Jackal
Re: VAT De-registration
All the more reason Washman should also consider de-registering perhaps? The VAT-man is fully wised-up now to the written petrol receipt trick. 😯
Also he looks carefully (during a VAT spot check that is) at your petrol receipts to see if you are sticking in a few ‘unleaded’ receipts when you only drive a ‘diesel’ fueled vehicle. Another point of caution for you poor unfortunates that are VAT registered! 😉
Re: VAT De-registration
Sorry, I can’t see the problem with being VAT registered.
Those of us that have been in the trade for more than a few years and have a healthy customer base are surely doing more than five calls a day!
Any more than that and you must be nearing the VAT threshold!
I worried a bit when I registered for VAT thinking that my increase in charges will lose me customers but it made no difference at all. In fact., if anything, it helps to keep the company image.
I subscribe to the “flat rate scheme”. There is very little paperwork. I just tell the VAT man how much I have taken for the three month period and send a cheque for 8.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} of my takings. ( the first year is 7.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d})
I couldn’t be doing with turning work down or cherry-picking my jobs just to try to cheat the system.
BobRe: VAT De-registration
Whats the Vat threshold now? 56K. I’m at least 10 grand under this, and thats the way I intend it to stay, Ok so it might mean I will have to take a month off work every year 😉 😉 I wish
Goose
Re: VAT De-registration
goosegreen wrote:Whats the Vat threshold now? 56K. I’m at least 10 grand under this, and thats the way I intend it to stay, Ok so it might mean I will have to take a month off work every year 😉 😉 I wish
Goose
The last few years I was Vat registered I used to fill in all my Vat forms online, pay all my Vat bills in the same way, it just irked me looking at my bank account and realising that it wasn’t all my money. I seem to remember a survey done almost 20 years ago, it was said that if the Vat level was raised by 100{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} it would remove over 75{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} of people/companies from having to pay Vat, it would result in a very small decline in Vat income that would have been offset 4 times over by the reduction in the staff needed to collect and enforce the tax. The problem is that this is the UK, tax em till they bleed to pay our index linked, gold plated pensions, government we are talking about. 😈
Current limit is £61,000 something I have been able to stay under without any problems, mind you, If I charged £50.00 for labour on a basic call my turnover would be almost non existant round these parts. You have to cut your cloth accordingly, lets just say, I make a butty. 😉 8)
Jim.
Re: VAT De-registration
bobokines wrote:Sorry, I can’t see the problem with being VAT registered.
I’m pleased you are happy with your association with the VATman Bob. Likely as not any successful sole-trader that has a healthy work load will almost certainly be bordering on the VAT threshold limit. So in order to avoid qualifying for VAT you will have to ensure your income is well below that. What’s more Her Majestys Customs & Excise will insist you register for VAT if your monthly income exceeds £5,080.
Below are the benefits of de-registering : –
1.) Your profits increase by 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}
2.) No paperwork (or you can take up origami if you insist!)
3.) Cash holds a special significance.
4.) No VAT to pay on credit/debit card transactions.
5.) Less income tax to pay.
6.) Call-out charges are 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} cheaper.
7.) More competitive, more customers.
8.) You can afford regular holidays for a change.Re: VAT De-registration
Martin wrote:
1.) Your profits increase by 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}
2.) No paperwork (or you can take up origami if you insist!)
3.) Cash holds a special significance.
4.) No VAT to pay on credit/debit card transactions.
5.) Less income tax to pay.
6.) Call-out charges are 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} cheaper.
7.) More competitive, more customers.
8.) You can afford regular holidays for a change.Martin. I can’t agree with your comments.
1.) Your profits increase by 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}How can profits increase by 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}? What you mean is that you deregistered but carried on charging the same labour rates and increased your mark up on parts by 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}
2.) No paperwork
With the flat rate scheme there is virtually no paperwork. Even under the regular scheme the paperwork is only a continuation of your required bookkeeping anyway.3.) Cash holds a special significance.
Smacks of “I’m on the fiddle”
4.) No VAT to pay on credit/debit card transactions.
If you are VAT registered and use the normal (not flat rate) system, then you claim back the VAT. So you pay a damn site more VAT if you are not registered!
5.) Less income tax to pay.
YOu only pay income tax (or in my case company tax) on profits. So the VAT does not show in this calculation.
6.) Call-out charges are 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} cheaper.
Er! doesn’t that counteract item 1?
7.) More competitive, more customers.
You don’t want more customers as they only take you over the VAT threshold.
8.) You can afford regular holidays for a change.
Do you mean that you have to take a holiday so that your turnover doesn’t go over the threshold? Strange way to run a business.
Of course I don’t like paying taxes… Who does? but I am tied by the law of the land, the same as everybody else. The only thing I don’t like about the system is that I (and a few million others) am an unpaid tax collector.I would find it very difficult to stay below the VAT threshold without fiddling the system. My business (and my whole life come to that) is based on honesty. And I’m proud of it!
Bob
Re: VAT De-registration
basically you charge at the same rate as if your were adding vat to your jobs, this compensates for the vat amount you cant claim back unless you have an awfull lot of vat deductable expenses you will make more profit.
simple maths tbh if your main core of business is with person who want to claim the vat back then its always better to be no vat registered.
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