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Activity Feed Forums Sign Discussion General Sign Topics VAT increase, your thoughts Reply To: VAT increase, your thoughts

  • Martin Pearson

    Member
    December 30, 2010 at 11:04 am

    Nigel, pretty much all the work I do is cut vinyl, mainly vehicle livery so I am not paying a lot of money VAT wise to start with. Overheads aren’t really worth claiming for either. I don’t pay VAT on my rent and I don’t have a phone at the unit so the only thing I could claim back is the electric which is never that high and is at a lower rate to start with. Consumables I don’t spend a fortune on either so any VAT I could claim back would be really minimal. Because all my work involves mainly labour this forms the major part of the selling price of any job I do. I can actually add the VAT I pay into a job and still quote a very competitive price as it’s generally only a few quid.
    Never really thought about it this way before but if I were VAT registered I would be paying the government for the privilege of working seeing as I am paying them VAT on the time I spend working :lol1:

    Anyway the point is that if your customer is VAT registered then it won’t make any difference who they buy from as they can claim the VAT back but an unregistered business can’t claim the VAT back so can end up paying more for the job.