MemberDecember 30, 2010 at 12:06 am
the majority of my work is cut vinyl, therefore it makes little difference to me, I don’t use huge meterage of vinyl and when i buy things in, i simply include the vat before I add my markup, the customer pays it.
I would think that only about 20% of my outgoings are materials, much of the rest is fuel and some bills etc, being home (workshop) based, my bills are minimal.
a great deal of my customers are not vat reg’d, most of those who are reg’d (regulars in particular) don’t see it as a problem as long as the price is good for them. i don’t have to be cheap, just competitive, I usually get the work regardless.
only once or twice can i recall ‘not being vat reg’d’ as the reason for not getting the work. A new customer told me off for saying ‘including vat’ rather than ‘no vat’ recently but, still went ahead with the order!
if i register then i’ll get vat back on my fuel (about the only reason i would do it) and materials but, I would also have to keep much more detailed accounts, ensure money was there to pay the vat man each whenever, and spend time doing ti.
as a small one man band who’s limited to around 25hrs a week in the workshop, and who’s had little problem with not being vat reg’d, i don’t see it as being something i will rush to join in a hurry!
I know many self employed people who are well under the vat threshold, and i mean well under it, maybe a £30-40k gross and a nett £16-20k tops as an income,
anyways, as others have said, and as i said when they lowered it to 15%, it makes naff all difference unless you’re spending many many thousands, even then, if spending 50k on an extension, another £k or two is not a big deal.
the 2.5% will have little affect on me or my yearly accounts.