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• PRO

  Andrew Watts March 1, 2017 at 8:53am

  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.
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  Chris Maynard March 1, 2017 at 6:02pm

  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. 
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    chris > Chris Maynard March 1, 2017 at 7:02pm

    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

  Andrew Watts March 1, 2017 at 9:37pm

  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.
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    chris > Andrew Watts March 1, 2017 at 9:46pm

    Thanks Andrew going to be a learning kerb if I run with it.
• PRO

  Andrew Betteridge March 2, 2017 at 6:04pm

  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
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  Chris Roberts March 2, 2017 at 9:00pm

  Its actually going to be 16.5% as a flat rate
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    chris > Chris Roberts March 2, 2017 at 9:05pm

    Closed that loophole makes it worse