to vat register or not

hi folks ,my work is now moving more and more b 2 b but I still sell a lot of memorial benches to domestic customers ,now I may well be skirting around the edge of the vat threshold next year again I have put off going vat registard as I am propper crap with paper work and very dyslexic
now if I go vat I will have to charge vat on my work not a problem for b2b but it makes my other work more expensive and im not cheap as it is.is there any disadvantage trading with non vat businsess'es if you are vat reg?
look forward to your help regards chris

 

[Delta-SI]

I have no idea fella but you have some very lovely stuff, when I get a chance I will send you a PM about a memorial bench that I need to sort out.

 

thanks delta I look forward to hearing from you

 

[trilby274]

My first post so please don't all leap on me at once.

You are, presumably, already paying VAT on your materials and including the total cost in your invoices to private customers/non-registered companies. This VAT is a cost to you which you are unable to claim back at present.

If you go through a cost comparison exercise, you may well find that you only have to increase your prices by a small amount to charge the VAT on your work. Obviously, there is an administrative cost in this and you say that you are not too good with the paperwork. On that front, I would suggest a purchase of something like Quickbooks which will work it all out for you. It only needs you to have the discipline to make your entries on a daily or weekly basis. It would also be worthwhile registering for online HMRC services.

Your B2B work will be unaffected if they are registered for VAT as the prices will be the same as before, or even a little less if you pass on your VAT savings from purchases to them.

If you are approaching the threshold, I would recommend registering sooner rather than later. If you need any help, scream - I have been running my small VAT registered business for quite a while and the VAT part of it takes 15 minutes every quarter to complete, including the online return.

 

[KidsBeeHappy]

To be honest Chris, your stuff is lovely, and the b2c decisions to buy are not being driven by cost, their being driven by emotions and the fact that your quality product is a tribute if you like. You have already said that there are lots of cheaper alternatives.

I don't think that you'll loose too much b2c business by being VAT registered. Purely because of the fact that it's a craftsman product in the first place.

I would price though using a £whatever plus VAT approach, for b2c too, partic if its the smaller part of your total business, that way you distinguish between what's yours and the element that the govt are adding on. It's not like you're selling DVDs or high street products that come vat inclusive prices, with any skilled profession you price on a plus vat basis.

 

[estwig]

Superb first post trilby, welcome to ukbf.

 

[Matt1959]

I agree with Boxy that you appear to sell high value items and the sort of customers who buy them probally won't be too bothered about the VAT element. However, I disagree with putting plus VAT for private customers as it draws attention to an extra charge - hide it in the price like everyone else does imho.

 

[lockie]

If you use the right software vat it is not a major headache i have found.

 

[Rydalcommunications]

only if you have too!!