Forum

Vat Yes or No

This is not another Brexit vote just want to know the forums view, on going over the Vat threshold Good or Bad.With a 50/50 split of commercial private maintenance on turnover, not sure what to do, concerned I will lose some of my private clients. With the 20% increase, I've looked into flat rate scheme but see the goverment are chasing this to 14.5% in April.Just wondering if it's all worth it, the extra admin will be levelled out with us all having to do the quarterly returns if the government get their way.Any help will be appreciated just a short note we don't do landscaping mainly maintenance with occasional border revamps.So will be limited purchasing ahead.

You need to be a member of Landscape Juice Network to add comments!

Join Landscape Juice Network

Email me when people reply –

Replies

  • PRO

    Big yes from me - didn't lose many domestic customers over it, many congratulated on doing well. Most expect to pay vat anyway.

    Admin no big deal if you use something like quickbooks etc.

  • PRO

    We went VAT registered last Jan and it was something we should have done ages ago. I think only a handful of customers directly left as a result and we gave nearly all a full 20% increase. I found the best thing I did was get my other half who does some admin for me to send out the price increase letters as she doesn't have first hand knowledge of the customers and just objectively applied the increases. I'm still amazed what people pay. I don't find it that much extra admin as we use Sage accounts and is just a few buttons to get the figures. We are mostly domestic lawns with only a few commercial contracts. 

    • So was the letter just a simple due to VAT we will be increasing prices by 20% ???
      My business is mainly maintenance so the customers get a bigger hit, not the volume of customers you possibly have if you do lawn treatment.???
  • PRO

    chris, it's a nuance, but you're not increasing your prices by 20%; they are staying the same. It's just that the customer will need to pay 20% more and you are an unpaid tax collector. Your net revenue will not increase, but some of your expenses will decrease as you'll be able to claim back the vat.

    When we spoke earlier, you mentioned some customer sizes; we do mowing and lawn care and I have 2 customers similar size to the large one you mentioned; one went through the vat increase, and one has been post vat. Neither of them has mentioned vat to be of any factor to them. In fact for some customers whom run businesses from home, it's a bonus for them I think.

    • Thanks Andrew going to be a learning kerb if I run with it.
  • PRO
    Registering for VAT reduces your overheads as you claim the VAT back on equipment purchase costs and running expenses; and so on. You can offset this against the cost increase to non-VAT registered customers, so your invoice to them may not increase by the full 20% or you may try to increase your margin and profit.

    Andy
  • PRO

    Its actually going to be 16.5% as a flat rate

    • Closed that loophole makes it worse
This reply was deleted.

Landscape industry Jobs

Landscape Operative

Additional landscape operatives required by commercial soft landscape contractor based in Crondall for immediate start. Landscape CSCS/CPCS preferable but not essential as full training given. Competitive salary and advancement opportunities for the… Continue

Junior Gardener

JOB BACKGROUND: Do you have high standards?  Are you able to commit to a role and work hard to maintain those high standards?  Are you keen to start a career in the horticultural industry with a company that will support and train you? Our Junior… Continue

Landscaper

Countryside Services is expanding – we have an increasing amount of bespoke, designed gardens on our books and need new staff. Your commitment to us: to be enthusiastically hard working (in all weathers), keen to learn and prepared to work long… Continue

Gardener

Our client is a successful family business with clients in both the residential and commercial sectors. They are now ready for the business’s next stage of expansion. They really are passionate about gardening and landscaping, providing a vast range… Continue

Latest blog post

PRO Supplier

ICL paves the way for more games at Pride Park Stadium

Nathan Scarff, Head Groundsman at Derby County FC, has revealed that a range of ICL products have helped him achieve his main target of hosting more games at Pride Park Stadium without compromising on the quality of the pitch.

Nathan…

Read more…

Trade green waste centres

Start a landscaping business

LJN Sponsor

Advertising

Technical landscaping books

Blogs

PRO Supplier

ICL paves the way for more games at Pride Park Stadium

Nathan Scarff, Head Groundsman at Derby County FC, has revealed that a range of ICL products have helped him achieve his main target of hosting more games at Pride Park Stadium without compromising on the quality of the pitch.

Nathan…

Read more…
PRO Supplier

After being selected as the official mower at the two most recent FIFA World Cup’s in South Africa and Brazil, Dennis Mowers will be the mower of choice for the 2018 tournament in Russia.

The Dennis G860 cylinder mower will have the task…

Read more…