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V.A.T. and recruitment....

Green Pro Clean Ltd

Well-known member
Messages
8,103
Location
Nottingham & Derbyshire
Well the house move went well so now living in Derbyshire which makes it impractical to commute to my round in Nottingham daily so that round has been sold.

I think it was @Damo that posed the question a couple of months back about 'Could you / Would you?' relocate and start over again. At the time I said no but the fact that our house was honestly beyond practical repairs for its age forced me into a decision. That decision was to get on with it, decide where we were moving too and start over again.

I think this is the best time of the year to do it as we are through the worst of the weather now and headding for spring when people are thinking more of the homes exterior.

I have taken on a youngster part time starting Monday with a view to full time as soon as he's able (as in I am comfortable to let him loose) and have also decided to get V.A.T. registered this week.

The reason for the VAT registration is having done some math it makes way more sense to do so as early on as possible, also then I will not restrict the growth or size of jobs I tender for.

We have just been settled a week as I have been running about the country but already got 18 new clients to start off just through word of mouth on the street we have moved too.

I don't know how it's going to go moving forward but as @daveyboy remembers from his rave days 'The only way is up'

I will make this a bit off a blog as it will cover most aspects of building from the ground up, what it wont cover of course is the tools as I already have these.

 
Would be really good to have a blog style post as it provides a positive vibe and aspect to review ones business and keep on pushing forward and Yazz and the plastic population the only way is up ain't rave :rofl:

 
Good luck with new venture.

It's something that I am thinking of doing back end of the year. Moving house (we only rent) to be in reach of more affluent areas to push the big jobs

 
You must be doing well if you're turning over £83k a year green. If you've sold your old round how will you be turning over £83k if you're starting from scratch?

Are you providing pension etc for the new start?

 
You don't need to do £83k to be VAT registered @Tuffers you could have a turnover of £8.30p and be VAT registered.
There are several benefits but I aint going into that whilst on my cell phone. Will elaborate more on it later.
I'm interested in the benefits. Have you got any more info yet green?

 
You can claim allot of VAT back which you can't if non registered. And going for big commercial jobs being VAT registered is advantageous!

 
OK so on the employee front not all roses just yet.

New boy last week was a demon for the first two days, going on about loving the work and doing well etc etc. Day 3 no show /emoticons/sad.png

Finally got hold of him and he had the usual BS excuses. Said we'll move on see you Monday (today)

Saturday I get a text saying not for him blah blah blah. I don't know may other 20 year olds that can make £10 per hour on the employee front.

Still, tomorrow I have another lad coming in and this one I do know, he's been in the game for 5 years now so hopefully we can work something out that's good for us both.

 
On the V.A.T. front @Tuffers the benefits for me are as follows:

I can claim back on all equipment purchased in the past 4 years that I currently still own, including vans, systems etc this is around £6k in rebate. I can also claim back on all services (Accountants, Cleaner Planner, web sites etc) for the previous six month period.

Moving forward I can claim back ALL VAT! Last month as an example alone I did £700 on fuel, that's £140 I can claim back. Today I will do £600 on the van insurance, that's another £120 and o on.

Now as I have mentioned before I am far from the cheapest windy around. So how I figured it was that if the average for a property is say £12. around here I would be £15 minimum. Not just to be the most expensive but because that is where I would NEED to be.

So I do a £15 clean, give £3 to Her Majesty, and still earn the same as the other lads on my turf....... but wait, no I don't.......... I earn more as I will be getting back 20% on all services and sundries in the future.

For large commercial work (I have a few schools on the books) they don't bat an eyelid, VAT is part of the game. Showing a VAT number gives them the impression that you are large enough to manage the task.

Moving forward, I am no longer restricted by 'Cant do more than £80k as I will have to register VAT and lose £16K right away!' I will have paid that out already and just sail past the 'threshold' without worry about where to find the money.

Finally - What would you do with a £7k rebate tomorrow? Advertising? New System? Buy some work? Or perhaps put away for rainy day?

Does not matter what you would do, it's better in my pocket than theirs and putting aside £2-£3 per customer will take and age to get to £7k this way I look at it as a savings scheme!

 
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