Not vat registered

rhinosaw · 6 Apr 2019

Who is supposed to benefit if the installer is non vat registered, not me by the looks of it. Two quotes I have had for a boiler change from unreg installers are more than from people who are reg for vat.
Also over £1200 for a Worc greenstar 12ri? (That's just the boiler price)

ollski · 6 Apr 2019

The installer usually but not by much.

oilhead · 6 Apr 2019

Advantages to both. The installer has less admin costs, but has to pay vat on goods which he cannot pass on. The customer does not get charged vat on labour, but obviously pays the vat the installer has to pay.

Notch7 · 6 Apr 2019

Im surprised a heating engineer could be under vat threshold.

Gasguru · 6 Apr 2019

Many installers just carry out repairs, gas checks and the odd install and are no where near the VAT threshold.
Personally I think everyone self employed should be registered to give an even playing field..and I'd ban cash payments too. The public are just as up for evading tax as dodgy installers.
I'm not registered but I guarantee I'll be more expensive than most that are registered...I'm not busting a gut installing...too many with wrecked knees and backs chucking boilers on walls for customers spending more on their phones

rhinosaw · 6 Apr 2019

Interesting points Gasguru

dilalio · 6 Apr 2019

Gasguru said:
customers spending more on their phones

And happy to spend the same again when a new model is released 6 months later, but if their boiler's had it after 14 years.... Well, that's just not good enough

FiremanT · 6 Apr 2019

dilalio said:
And happy to spend the same again when a new model is released 6 months later, but if their boiler's had it after 14 years.... Well, that's just not good enough

Im ordering a iphone X.

In about 6 years.

D_Hailsham · 6 Apr 2019

oilhead said:
Advantages to both. The installer has less admin costs, but has to pay vat on goods which he cannot pass on. The customer does not get charged vat on labour, but obviously pays the vat the installer has to pay.

The red and green statements are contradictory.

A VAT-unregistered trader can pass on the VAT he pays on goods and services to his customer; but he cannot charge VAT on the labour he provides.

If the trader carries out work for VAT-registered customers he will probably find it worthwhile registering for VAT, even if below the threshold, as his customers will then be able to offset the VAT he charges against the VAT the customer charges.

durhamplumber · 6 Apr 2019

durhamplumber · 6 Apr 2019

ollski · 6 Apr 2019

Notch7 said:
Im surprised a heating engineer could be under vat threshold.

Expect they have a good accountant who adjusts the company name every time the threshold is near.

Bodd · 7 Apr 2019

Notch7 said:
Im surprised a heating engineer could be under vat threshold.

I keep under it. I ask the customer to pay for materials, if its a heating or a bathroom job.

oilhead · 7 Apr 2019

I meant a non registered installer cannot claim vat back, and needs to pass it on.
A non registered engineer who does not fit anything large or expensive has no problem staying under the vat threshold unless he charges ( and gets away with it) a stupid rate per hour. Grossing £50K per annum still leaves over £20K for expenses in the accounts.

Notch7 · 7 Apr 2019

Bodd said:
I keep under it. I ask the customer to pay for materials, if its a heating or a bathroom job.

I thought all plumbers were on £100k per year easy and just working part time

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Not vat registered

durhamplumber

durhamplumber

Bodd

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