Employing a friend.....

[Renaultman]

I registered straight away

Depends on the size of business though, if you're a small, obviously, mainly labour business dealing with the public. You have an advantage not being VAT registered as their bills are 20% cheaper. For any business to business transactions being VAT registered is almost essential. Have been in a similar situation with a fitter who I couldn't get it through to that I would buy the parts and he could fit them.

 

[Turra farmer]

He's a prat and has proved that he is no businessman and has little understanding of customer relations or finances. Stand back and watch his business fail.

Ye he sounds like an idiot , not even to realise if you had bought stuff you would hse got vat back

2nd mortgage on house says it all !

 

[Bob c]

Depends on the size of business though, if you're a small, obviously, mainly labour business dealing with the public. You have an advantage not being VAT registered as their bills are 20% cheaper. For any business to business transactions being VAT registered is almost essential. Have been in a similar situation with a fitter who I couldn't get it through to that I would buy the parts and he could fit them.

it wont make it 20% cheaper

 

[Renaultman]

it wont make it 20% cheaper

Sorry another lesson in re-read before you press post. Should have read that the non VAT registered tradesman can reduce their bills by 20% as they don't have to charge VAT.I admit it didn't read well.

 

[Turra farmer]

Sorry another lesson in re-read before you press post. Should have read that the non VAT registered tradesman can reduce their bills by 20% as they don't have to charge VAT.I admit it didn't read well.

They will be charging the vat on materials , only the labour part won't have vat added

 

[Adeptandy]

Seems a bit naughty to me, I've set it up so the plumbing business isn't VAT registered as it reduces the labour by 20% to those not registered, but if I have major items to purchase for VAT registered businesses, then they get the option to purchase them, I just add a little to the labour for specifying the items for them

 

[Renaultman]

They will be charging the vat on materials , only the labour part won't have vat added

Which is why I stated mainly labour, where the customer pays for materials.

 

[Renaultman]

Seems a bit naughty to me, I've set it up so the plumbing business isn't VAT registered as it reduces the labour by 20% to those not registered, but if I have major items to purchase for VAT registered businesses, then they get the option to purchase them, I just add a little to the labour for specifying the items for them

Exactly and keeps your turnover below the VAT threshold, common business practice.

 

[Adeptandy]

Exactly and keeps your turnover below the VAT threshold, common business practice.

 

[TripleSix]

I'm a man and van fixer, I've no problems with people buying the parts for me to fit, or even me buying them on their account.

Means I just invoice labour, a lot easier.

Stuff like lawnmower servicing gets a few quid made on the parts....

 

[ARW]

There's no friends in business

 

[TripleSix]

There's no friends in business

I was always warned not to work for my friends.

I've become friends with some people I work for though.

 

[ARW]

Me to, all lads who work for me are now my mates and so are some of my customers! No wonder I never make any money!

 

[Exfarmer]

You have probably been stuffed twice. £1300 for a hot water kit for a wasbasin sounds grossly over the top suggexting there is some sort of discount built in. This is common practice, the builder charges list price but actually buys parts at discounted price which may be any thing like 50% off

 

[glasshouse]

never work for friends or relatives

 

[Adeptandy]

never work for friends or relatives

You can, but define the boundaries

 

[Renaultman]

You can, but define the boundaries

Exactly.

 

[Adeptandy]

I treat the extended family like I would any other customer, I won't take liberties if they don't expect something for nothing.

 

[Hay Farmer]

He must be feeling guilty, just had an email out of the blue offering a refund of £430 due to an "error in the invoice".

 

[wr.]

He must be feeling guilty, just had an email out of the blue offering a refund of £430 due to an "error in the invoice".

He may be a forum member