Spit & polish
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- 168
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- Essex
Just wondered how many domestic windies are vat reg and how much customer did it lose you.
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Think you would need to be trading over £80k a year for Vat Reg. That would mean a few vans on the road and being a manager as well. Better as a sole trader and staying below that level and work a stress free life. I have to help finish a kitchen this week because the fitter never came back and that's the reason I don't do it, too stressful relying on other people to help you do the job.Just wondered how many domestic windies are vat reg and how much customer did it lose you.
You don't need a few vans on the road to be hitting £80k.Think you would need to be trading over £80k a year for Vat Reg. That would mean a few vans on the road and being a manager as well. Better as a sole trader and staying below that level and work a stress free life. I have to help finish a kitchen this week because the fitter never came back and that's the reason I don't do it, too stressful relying on other people to help you do the job.
That’s very true each van should be in that regionYou don't need a few cans on the road to be hitting £80k.
Few vans and a manager for £80k lol okay ?Think you would need to be trading over £80k a year for Vat Reg. That would mean a few vans on the road and being a manager as well. Better as a sole trader and staying below that level and work a stress free life. I have to help finish a kitchen this week because the fitter never came back and that's the reason I don't do it, too stressful relying on other people to help you do the job.
I’m just starting out setting up to get into this business so please excuse me if I’m over stepping the mark as I’ve very little experience with this.Think you would need to be trading over £80k a year for Vat Reg. That would mean a few vans on the road and being a manager as well. Better as a sole trader and staying below that level and work a stress free life. I have to help finish a kitchen this week because the fitter never came back and that's the reason I don't do it, too stressful relying on other people to help you do the job.
Best to get professional advice from an accountant rather than a bunch of window cleaners ???,I’m just starting out setting up to get into this business so please excuse me if I’m over stepping the mark as I’ve very little experience with this.
I was advised that rather than setting up as a sole trader it would be better to set up as a partnership with my wife as the partner. The reason being that as a sole trader I can earn 12k a year before having to pay tax but as a partnership it would be 24k before I’d have to pay tax. She’s a stay at home mum and so the set up would suit us quite well.
does anyone know of any reason why this would be a bad idea? (Apart from if we divorced obviously. I get that bit)
Fair point ???Best to get professional advice from an accountant rather than a bunch of window cleaners ???,
He’s not asking about VAT !!!!Most sole trader window cleaners will get nowhere near £80k a year so no worries about VAT!?
I'm surprised more domestic aren't VAT registered I see quite a few round here with 2 or 3 vans out or a couple of lads working for them.If your wife has no job and receives no benefits then becoming limited will allow you to use up her tax allowance and bring in around 24k a year tax free between you both.
Always see an accountant first and he will advise best.
Your accountants fee will be more as he will need to do payroll and prepare limited accounts.
I'm surprised more domestic aren't VAT registered I see quite a few round here with 2 or 3 vans out or a couple of lads working for them.
We have been running businesses as a partnership for the last 18 years or so, only last 6 months cleaning windows. As you say you both earn from the business so if you take 50% of profits each then you have both tax allowances to 'use'. It might be worth advertising your home number or a virtual local code one directed to home so your wife is actually working for the business!I’m just starting out setting up to get into this business so please excuse me if I’m over stepping the mark as I’ve very little experience with this.
I was advised that rather than setting up as a sole trader it would be better to set up as a partnership with my wife as the partner. The reason being that as a sole trader I can earn 12k a year before having to pay tax but as a partnership it would be 24k before I’d have to pay tax. She’s a stay at home mum and so the set up would suit us quite well.
does anyone know of any reason why this would be a bad idea? (Apart from if we divorced obviously. I get that bit)
It would be interesting to hear @Pjj's story of how he went from basically nothing to having 3 vans and 5 staff. How long did it take him to hit the 40% threshold? How long before he employed? How long before he put a second van on the road? How long before he went VAT Registered? What his future plans are? I think this would be invaluable information for any new starter hoping to grow their business ?If your wife has no job and receives no benefits then becoming limited will allow you to use up her tax allowance and bring in around 24k a year tax free between you both.
Always see an accountant first and he will advise best.
Your accountants fee will be more as he will need to do payroll and prepare limited accounts.
I'm surprised more domestic aren't VAT registered I see quite a few round here with 2 or 3 vans out or a couple of lads working for them.
I have a business account in my company name as a sole trader with no problem.We have been running businesses as a partnership for the last 18 years or so, only last 6 months cleaning windows. As you say you both earn from the business so if you take 50% of profits each then you have both tax allowances to 'use'. It might be worth advertising your home number or a virtual local code one directed to home so your wife is actually working for the business!
One thing to remember is that you both should think about your National Insurance contributions as you need X number of years to get a gov pension! So might be worth voluntarily paying it!
The accountancy costs for a partnership are more than sole trader as there are 3 tax returns, 1 each for you plus a partnership return. Check with your accountant.
One other thing to consider is banking. I was recently told that as a sole trader your bank account had to be in your name but could have a 'trading as xyz windows' on it. If you have a partnership you can have the account name as 'xyz window cleaning'. Why does this matter? Well if you want your customers to pay by BACS then the bank account name they enter must match with your account name otherwise they get all sorts of fraud messages. I did find a few of the 'online banks' didn't do partnership accounts but the high street ones do.
That's good to know, which bank are you with?I have a business account in my company name as a sole trader with no problem.
Lol it would read like an episode of war and piece ????long storey short , started on my own trad for 6-7 years after 2 years had a friend work with me a couple of days a week who was also trad and far more experienced than me , i got a lucky break and I picked up a large contract for a very well known company with large blocks of flats / semi retirement flats , we struggled to do all the work even working together full time so I got a few other people to help us out , in 2005 I was told I had to change to WFP or loose the contract as the company were banning ladders from all there sites , by now we were doing all their work in Cornwall , and quite a few in Bristol, Bath , Cleveland, so I bought 2 vans and two ionic systems pro 5 , reaching the vat limit trad would be challenging but WFP with the right jobs one van can achieve it theses days without to much trouble if doing a lot of commercial, domestic with one van and two guys it can be done as well . Our work really took off from 2005 as I went WFP should have done it sooner with hindsight but it was in its infancy then , I am not interested in growing the business but if I wanted to am confident I could add 1-2 vans per year with the number of inquiries we are getting and the work Ime turning away , this isn’t boasting or exaggerating it’s just what I have experienced, and assumed most places were the same as hear , there is still a great shortage of cleaners down hear ,It would be interesting to hear @Pjj's story of how he went from basically nothing to having 3 vans and 5 staff. How long did it take him to hit the 40% threshold? How long before he employed? How long before he put a second van on the road? How long before he went VAT Registered? What his future plans are? I think this would be invaluable information for any new starter hoping to grow their business ?
Hsbc business mate.That's good to know, which bank are you with?
When I was trying to open a business account they told me it would have to be in my name and trading as xyz, think it was Natwest and Co Op that I spoke too but that was at the peak of pandemic and bank staff were working from home so maybe lack of knowledge.
Great story pjj. I'm nowhere near as far down the line as you. In fact I think people are tightening their belts in my areas. The past 7 days I've picked up a couple of jobs, had a couple a day say come next time, a couple have said come back in the spring (I'll decide whether to nearer the time) and lost something like 3 clients. Got asked to quote a city centre building with access and parking issues ?. Not a great last 7 days, but the next 7 days might be great?Lol it would read like an episode of war and piece ????long storey short , started on my own trad for 6-7 years after 2 years had a friend work with me a couple of days a week who was also trad and far more experienced than me , i got a lucky break and I picked up a large contract for a very well known company with large blocks of flats / semi retirement flats , we struggled to do all the work even working together full time so I got a few other people to help us out , in 2005 I was told I had to change to WFP or loose the contract as the company were banning ladders from all there sites , by now we were doing all their work in Cornwall , and quite a few in Bristol, Bath , Cleveland, so I bought 2 vans and two ionic systems pro 5 , reaching the vat limit trad would be challenging but WFP with the right jobs one van can achieve it theses days without to much trouble if doing a lot of commercial, domestic with one van and two guys it can be done as well . Our work really took off from 2005 as I went WFP should have done it sooner with hindsight but it was in its infancy then , I am not interested in growing the business but if I wanted to am confident I could add 1-2 vans per year with the number of inquiries we are getting and the work Ime turning away , this isn’t boasting or exaggerating it’s just what I have experienced, and assumed most places were the same as hear , there is still a great shortage of cleaners down hear ,
Now it would be interesting to hear your experience @Tuffers .
Ok sorry to hear that , so far things hear are as busy as ever , I don’t think things will change but time will tell , Ime guessing different areas people’s disposable income varies , we have a lot hear that are semi retired , retired , got businesses that are doing well generally we don’t have large employers must lots of smaller firms that are doing very well Covid has finished off all the ones that were teetering on the edge .Great story pjj. I'm nowhere near as far down the line as you. In fact I think people are tightening their belts in my areas. The past 7 days I've picked up a couple of jobs, had a couple a day say come next time, a couple have said come back in the spring (I'll decide whether to nearer the time) and lost something like 3 clients. Got asked to quote a city centre building with access and parking issues ?. Not a great last 7 days, but the next 7 days might be great?