Covent garden tonight. Full of Arabs.

[Bodd]

You don't buy any parts or materials that are imported? Not even a van?

Still not my problem. I don't want to go VAT.

My van is a Vauxhall not renewing any time soon. Most things plumbing and heating I can buy British made products... I used to fit Viessmann now fit Ideal boilers

 

[SirGalahad]

Still not my problem. I don't want to go VAT.

My van is a Vauxhall not renewing any time soon. Most things plumbing and heating I can buy British made products... I used to fit Viessmann now fit Ideal boilers

So your making just under 85k and your moaning about competition, how many jobs you lost to cheaper plumbers

 

[Bodd]

So your making just under 85k and your moaning about competition, how many jobs you lost to cheaper plumbers

I do all the time... But I'm expensive. I have no problem being expensive. Once I have the job secured the quality of my work comes before my profit.

Me being under the VAT helps me compete

 

[Deleted member 63160]

So your making just under 85k and your moaning about competition, how many jobs you lost to cheaper plumbers

Turnover 85k. Probably making less.

 

[noseall]

So your making just under 85k

Unlikely. Unless he no outgoings (buys zero materials) which is extremely unlikely.

 

[SirGalahad]

Unlikely. Unless he no outgoings (buys zero materials) which is extremely unlikely.

I know T/o is 85 but whats his running costs?

 

[Bodd]

Unlikely. Unless he no outgoings (buys zero materials) which is extremely unlikely.

On small jobs I buy materials. Bigger jobs I quote in full. I then get the customer to buy materials.

 

[Bodd]

I know T/o is 85 but whats his running costs?

I crossed into the 40% tax bracket last year. I don't mind that it's the VAT I want to avoid. If I can do this without breaking the rules then I'm happy...

 

[EFLImpudence]

You Remainer types do like to think you are superior..

Prove them wrong, then - rather than just showing the reverse is true.

 

[Notch7]

I don't want to go VAT

Making tax digital came in earlier this year, so becoming VAT registered means having accounts software........

HMRC want to reduce VAT threshold down to £20k or so.....

 

[Bodd]

Making tax digital came in earlier this year, so becoming VAT registered means having accounts software........

HMRC want to reduce VAT threshold down to £20k or so.....

If that's the case then at least its a level playing field and I'll have to deal with it.....

Cash in hand jobs will be the negative response to this.

 

[Mottie]

The vat threshold doesn’t apply to me as I’m exempt so any changes, whatever they may be, won’t affect me one bit.

 

[Deleted member 63160]

If that's the case then at least its a level playing field and I'll have to deal with it.....

Cash in hand jobs will be the negative response to this.

Its frozen till March 2022. Unlikely to change IMO.

 

[Mottie]

I crossed into the 40% tax bracket last year. I don't mind that it's the VAT I want to avoid. If I can do this without breaking the rules then I'm happy...

See your accountant. Go limited. Pay yourself just below the threshold as a salary, take the rest in dividends. No NI, No company NI, 7.5% tax on dividends (first £2k exempt). Not as good as it used to be but a lot better than 40% plus NI. Better still if you make your wife a director too. All legal and above board. Still have corporation tax to pay but still works out worthwhile.

 

[Notch7]

See your accountant. Go limited. Pay yourself just below the threshold as a salary, take the rest in dividends. No NI, No company NI, 7.5% tax on dividends. A lot better than 40% plus NI.

If Bodd wants to avoid the paperwork etc with VAT, I cant see him wanting to incorporate.

It does reduce tax liability but dont forget labour is no longer counts as an expense.