VAT on domestic & commercial

Discussion in 'Managing Your Business' started by A1 Window Cleaning, Jun 1, 2016.

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  1. A1 Window Cleaning

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    Hello,

    After some advice. My business is growing and I'm approaching VAT. My issue is, I can add VAT to my commercial clients but I can't see my domestic customers paying it?

    Someone has advised me that I can have two sole traders, one for domestic and one for commercial. I already run another business and that's separate so I know that technically it's correct. But has anyone got any actual experience?

    Thanks
     
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  2. Green Pro Clean Ltd

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    The other person is talking sh*te, if you set up two companies both owned by you then the tax man will apply the aggregation of businesses law and consider them as one entity and charge you VAT.

    You say you are approaching VAT thresholds, you are aware that VAT is chargeable on £81000 turnover in any 12 month period, so if you have just had a good six month run you may well be liable for VAT on that as well.

    Go talk to an accountant, that's the best advice you'll get not the chap at the bar with iffy advice. :)
     
  3. A1 Window Cleaning

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    This is what I thought, think I will just have to stay under the VAT threshold. As something doing small like picking up a £15 customer would mean I have to collect/pay VAT on my previous 6 months work! Happy to pay the tax and then the VAT on commercial stuff, but just seems crazy that something like this can stop small businesses from growing. My accountant said to stay under the threshold
     
  4. peter rogers

    peter rogers Grand Master
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    were abouts are you ?? if u r going to go over it u might aswell make it worth it by advertising and canvassing to get it well up
     
  5. A1 Window Cleaning

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    The problem is that I'd need an extra £20,000 worth of work straight away for it not to cripple my cash flow etc, so if I'm going to pass it, I'd have to get a lot bigger and I'm not sure that's what I want.
     
  6. Green Pro Clean Ltd

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    I am of the position where to expand my monthly I have decided to just shut down for September, this allows for a well stacked 11 months a year as well as a decent sized break each year for a recharge. :)
     
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  7. peter rogers

    peter rogers Grand Master
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    do you have an accountant ?
     
  8. A1 Window Cleaning

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    Hi, yes, their advice was to stay under the threshold. Or to go big on the commercial side, easier said than done lol
     
  9. peter rogers

    peter rogers Grand Master
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    build mate but depends were u r as the national companies are wiping work out see it alot on fb these days
     
  10. A1 Window Cleaning

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    That's something I've been thinking about for the last few years. I think there will always be room for the smaller guys, but I don't think it will be long until the big boys push a lot of people out of business. "Nationwide Window Cleaning" are popping up all over the place and were given a £3,000,000.00 grant to grow and develop their business! Most window cleaners can't even get a business loan at first
     
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