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VAT threshold for businesses -does it hold back growth
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My accountant suggests getting the customers to pay for as much of ther own materials as they can.
A lot of tradesmen I know that hover or go over the limit, are intent on making money from materials, hence the hefty turnover for those that buy lots of second fix items, I.e. kitchens, tiles, bath suites, CH boilers, fancy radiators etc.
Looks like you agree with the Reform party VAT policy. Glad to see you are at last coming round. You’ll be urging everyone to vote reform before you know it.
Without any doubt reducing the VAT threshold would increase cash jobs and reduce the tax take
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Many consumers are aware of the Quote for Retail scam. that some builders pull. Travis Perkins "retail" price is normally double what you can get from alternatives.
of course from a consumer point of view, its better to buy direct, rather than have to claim warranty issues against the builder.
of course from a consumer point of view, its better to buy direct, rather than have to claim warranty issues against the builder.
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surely you are VAT registered.
A scam, or is it just a variation of the “I can get a discount for you” ?
Better to let the builder take the rap if you are a consumer, because they are also liable for the service, and it is better to keep both claims together , especially When it is not always clear where the failure lies.
The lowering of the VAT threshold will increase prices for every one needing a service that currently does not have to add VAT. It may well also make some small independent businesses just give up who dont want the extra VAT faff - its almost like labour dont want people to create their own independent wealth - "you will own noting"
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If it is used to imply that a "Trade price" is being passed on to the consumer, it is intended to deceive.
RRP £100
"Trade price "£80
Actual Price £60
What offence does a person commit, if they obtain a benefit through deception ?
No it isn't. 1st rule of litigation?
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Looks like you agree with the Reform party VAT policy. Glad to see you are at last coming round. You’ll be urging everyone to vote reform before you know it.
It ook me some time to realise when a tradie said I can get a discount, they meant for themselves not to be passed on, but isnt deceit, it's pretty standard practice. The fact that I didnt understand it a a consumer makes no difference.
I imagine you mean sue the person who can pay up, but if the supplier blames the builder for the way the materials were fitted, you still have to sue both.
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It may be standard practice, but your own statement is confirmation. "it took me some time to realise". along with "The fact that I didn't understand."
Materials tend not to come with meaningful warranties.
Do you have to understand an implication?
More reason to benefit from both warranties
The problem isn't the limit, it's that when you exceed it by 1p you pay VAT on the whole lot. It needs to be tapered, perhaps at least up to a turnover limit.
It's worthwhile running a business with £90k turnover without paying VAT (provided there's a good amount of profit in it), and it's worthwhile running a VAT registered business with £400k+ turnover. Between the two is a bit of a mug's game, you'll probably pay a lot more in tax than you'll earn for yourself.
The zero VAT threshold is very good for small and startup businesses, who will undoubtedly have higher proportional costs than bigger companies. So it evens the playing field and gives the one-man band a chance against the big boys.
If Rachel Thieves eliminates or reduces the threshold tomorrow then it's very unlikely to result in increased tax take, as many will either go underground or just give up completely. Perhaps not immediately, but many just won't bother starting businesses in future. It would be very very bad for the economy, about as anti-growth as you could get.
But it's unlikely her experience of running a complaints department equips her to understand this basic concept, so she may well be daft enough to do it.
It's worthwhile running a business with £90k turnover without paying VAT (provided there's a good amount of profit in it), and it's worthwhile running a VAT registered business with £400k+ turnover. Between the two is a bit of a mug's game, you'll probably pay a lot more in tax than you'll earn for yourself.
The zero VAT threshold is very good for small and startup businesses, who will undoubtedly have higher proportional costs than bigger companies. So it evens the playing field and gives the one-man band a chance against the big boys.
If Rachel Thieves eliminates or reduces the threshold tomorrow then it's very unlikely to result in increased tax take, as many will either go underground or just give up completely. Perhaps not immediately, but many just won't bother starting businesses in future. It would be very very bad for the economy, about as anti-growth as you could get.
But it's unlikely her experience of running a complaints department equips her to understand this basic concept, so she may well be daft enough to do it.
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