Invoicing & Vat Help

Discussion in 'Managing Your Business' started by Flinn, Mar 5, 2013.

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  1. Flinn

    Flinn Member
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    Hello All,

    I need a bit of advice on a few things, Ive just became self employed, and do domestic window cleaning just to build up my customer base and want to move into the commerial market.
    1. When i do approach commerial businesses,most im sure, will want to pay by invoice?
    If paying by invoice..If im not registered for V.A.T yet (because im not earning anywhere near the threshold yet)
    How do i state this on the quote.. im assuming that if the job costs say £200, that is all i put on it, with no mention of V.A.T?

    2. Do i register voluntarily for V.A.T even though im under the threshold or how does it work?

    2 Will not being V.A.T registered not put company`s off hiring your servises ?

    Its a mine field out there lol

    Do i go to the bank & open a Business account ? Do they set up the V.A.T etc BACs Etc

    p.s

    Ive got my website up and running, and registered with yell & and few other free to advertise companys..
    Wanting to get this sorted before approached to cost commerial premises

    Many Thanks Guys

    Ian
     
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  2. Iain

    Iain Guru
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    Don't register for VAT unless you hit the threshold. It's just more paperwork and doesn't bring many benefits.

    On your invoices you don't need to mention anything to do with VAT. It's not unusual for business not to be VAT registered so it wouldn't put anyone off. Most people won't care to be honest!

    Your bank will set up your bank account so customers can BACS money to you but that's it.

    When you're ready to go VAT registered, after kicking and screaming, you can do it yourself or get an account£nt to do it for you
     
  3. Gmeister

    Gmeister Grand Master
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    A few companys including one on this forum, advertise the fact they dont charge vat!

    I bet this produces more customers!
     
  4. Iain

    Iain Guru
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    Larger businesses that are VAT registered wont care as they'll claim it back anyway.

    Domestic customers will as you'll have to charge more or pay the VAT yourself.
     
  5. Flinn

    Flinn Member
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    Iain and Gmeister,

    Thanks for answering my question, you have been of great help,I was`nt to sure how it worked TBA.
    Tell me this,when opening a business account with the bank.
    I take it they will open my account under my company name?
    As im self employed under my company name.

    Thanks

    Ian
     
  6. Iain

    Iain Guru
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    They'll register the account under your trading name, so the account will show Ian t/a but sometimes they just put the business name. Depends on the bank really.

    Lots of banks offer free business banking for 2 years which should save a bit of money for a while.
     
  7. Flinn

    Flinn Member
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    Cheers Iain,

    Great Help

    Thanks
     
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