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Non vat registered allows you to undercut those who are registered.
Rubbish.
And what are the HMRC going to do
**** all.
I've had the suspicious looks too. It's the kind of
I remember going to plenty of small town restaurants who were not vat registered as they had only just taken over... Would have never clocked it if we hadn't been going back each year for work. Again publishing tax returns won't tell you much more just have a bunch of unqualified people going through them to get people investigated.
@dd really massive yawn, really big one. I am well aware you don't have to be, well aware you can be a sole trader without a ltd co. What I don't fully understand is why some traders below the turnover requirement threshold chose to register. I imagine it could be to do with offsetting vat expenses - was just wondering out of curiosity
Rubbish
20% lower price to customer - no ?
Just in case you misread the guy who did my decorating was vat registered
Obviously, above a certain threshold (can't remember exactly what...£70k-ish?), you [i]have[/i] to be VAT registered, no choice and this can be on a rolling twelve month period.
If you're selling mainly labour, and are underneath the threshold, then you can choose whether to be VAT registered or not. Most choose not to be for simplicity.
If you're under the threshold but are making a lot of your money from supplying materials, eg carpet fitter, then it [i]can[/i] make sense to be registered.
As neal says, a lot of people don't understand this and think you've said "No, I'm not registered to pay tax." when they ask how much VAT is going on the bill. 🙂
Just on the labour element as you wouldn't be able to claim VAT back on the materials, which would just flow though for a registered trader.
The policy changes to VAT over the last 25 year have been very good, encouraging startups, self employment and reducing costs for everyone.
EDIT: Threashhold is now £81,000.
20% lower price to customer - no ?
No.
How about all the other stuff, like tools, materials, vehicles, fuel etc etc etc etc.
The VAT registered person gets those 20% cheaper than the non VAT registered one.
Makes the gap very small in reality.
Depends on the trade, and the overheads etc obviously.
But it's WAY more complicated and involved than ..."undercut by 20%"
massive yawn
We'll go to sleep then. Haven't you talked a bough shite for one day? Or quote some figures and sources so your claims won't sound so outlandish.
20% lower price to customer - no ?
Some fag packet maths for you...
I quote you £120 to do a job. But ask you to order and pay for the paint. You pay for the paint and I charge you £120.
The VAT registered painter quotes you £100 + VAT, charges you £100 + VAT for your Barrow and Fall (retail) but maybe gets it at £75 + VAT from the decorators merchant. So, your bill is £240, £25 of which goes to HMRC (minus the £15 VAT that he paid for the paint). So he makes £100 labour + the profit on the paint. Hence why it's advantageous for some traders to register, even if they're below the threshold.
The policy changes to VAT over the last 25 year have been very good, encouraging startups, self employment and reducing costs for everyone.
+1
It's made a massive difference to a lot of people who might struggle with the concept of quarterly VAT returns. And if those I know are to believed, you do not want to be late with your VAT returns. Income tax is one thing, but they'll really crucify you if you muck up your VAT. It's also simplified things for low earning tradespeople who can do small jobs for people and not have to hit their customers with a 20% surprise.
£81k now? Phew, I'll be alright this year then. 😆
Could you not just strive a bit harder and have some more aspirations
Its people like you who are keeping this country on its knees...no ambition, happy with their lot, not motivated by greed....I despise you...obscure and pointless subtle abstract hint at him being Irish without being explicit about it.
Hardly been on here today so the yawn is very much specific for you and your post just trying to invent a controversy where there was none. Thanks for the example. As I said don't know why painter and decorator was registered.
JY no doubt in my mind an entrepneurial skilled tradesman will get a visa in a post Brexit world, whether they come from Ireland or the Ivory Coast
£81k now?
£83 actually for 2016/17, I was wrong, I relied on first result google threw up.
If your customers are mainly folk paying with their own money and your charges are mainly just labour, then you CAN be cheaper if you are non-VAT.
The Plumber, Electrician, Slater and Decorator we use are all non-VAT - and all paid straight into their TA bank accounts. Our Joiner isn't, but bloody good so we just have to accept he's dearer.
[i]Income tax is one thing, but they'll really crucify you if you muck up your VAT[/i]
For ourselves we use FRS VAT, which means not really having to account for it as we pay it based on turnover - means less hassle and no surprises.