The next step?

Discussion in 'Managing Your Business' started by monkeyman, Aug 28, 2015.

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  1. monkeyman

    monkeyman Well-Known Member
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    So I'm maxing myself out, but work is always coming in, so I could employ some one. So I get the right person, great.I pay them a decent wage. Then I hit the VAT bracket not great. So I would be massively out of pocket. I would struggle to put my prices up 10% never mind 20%. So how do I make the step without loosing out.
     
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  2. Get a creative accountant?
    Sounds like you're doing well.
     
  3. boarcity

    boarcity Guest

    my tip is employ someone before you burn yourself out . thats the very worst thing that can happen, burning out .
    things like VAT is a small worry cos when you are overburdened with work you can jack prices up cos the inflow of work will way overcome it
     
  4. peter rogers

    peter rogers Grand Master
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    any customers u take on say u charge 10 pound charge them 12 then ur ready for the vat
     
  5. matt18

    matt18 Member
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    #5 matt18, Aug 29, 2015
    Last edited: Aug 29, 2015
    it may be worth you starting another ltd company doing window cleaning, that takes the new custys. ;)

    [​IMG]
     
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  6. peter rogers

    peter rogers Grand Master
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    running 2 companies hardr


    2 accountant bills

    double books

    double headache

    and all to avoid vat ??? dont forget u claim backk all vat u spend
     
  7. Green Pro Clean Ltd

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    WRONG, if he is listed as a director of both companies (or even he one and his wife the other) the VAT man has some BS law, I forget the exact name but something like 'The amalgamation of business act' If VAT man can prove you started another company in a vain effort to dodge taxes.

    Should the two companies be in similar (or the VAT mans opinion of similar industry) such as you have a window cleaning business and the wife has a office cleaning business they could link the two and say you owe vat on both.

    There is no law to stop you having two totally different companies, one cleans windows the other sells lollipops, that the VAT man does not mind.

    Remember VAT threshold is based on a 12 month rolling period not just the annual tax year, so for example you make 82'000 from July 2015 to may 2016 you need to stop trading for the 2016 June month otherwise you are liable.

    Before you all start with 'my mate just opened another company blah blah' that is b*ll*cks, and if you mate told you that you have mates that lie to you.

    Best advice is go see an accountant, they all do a free 30 minute consultation for free and they are the best situated to advise you.
     
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  8. Green Pro Clean Ltd

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    Yes peter, you do claim back the VAT on all items you buy when you are VAT registered, but here is the consideration.

    At 82'000 you are paying £16'400 per year in VAT, so to get that back in reclaims you need to be spending around £70'000 per year to even get close, dont know bout you pete but I don't buy that many squeegees.
     
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  9. boarcity

    boarcity Guest

    also remember that anything you bought that you still have in your possesion prior to going vat reg you can claim for. an example being a van the vat you paid on purchase 2 yrs prior it might be a tidy sum you will now get back
     
  10. peter rogers

    peter rogers Grand Master
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    diseal uniforms flyers advertising vans systems etc etc


    if ur going to break the vat threshold u need to break it proper no point dikcing around the 82000 mark make it worth your while folks


    you get a good accountant and he will loook after you rightly
     
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