MemberDecember 29, 2010 at 10:27 pm
Don’t get some of the logic here about not being vat registered. By not being vat registered you are paying for the vat on the goods you buy which decreases your profit???
Signmaker is vat registered he charges 20% vat on his job lets say job cost £100 the vat = £20
lets say material costs including rent, elect telephone, stationary, computers software etc etc are £60.
Signmaker is not vat registered charges £100 with no vat. Costs £60 the Vat = £12
or add the vat as a cost, the price is £112
By not being vat registered you are losing money as you are taking the hit on the vat you paid or costing the vat registered customer more money than buying from a vat registered signmaker.