Spark wants money in advance

[saxondale]

I would add that since I never want to VAT register

Doesn't that make you uncompetitive compared to businesses which do register?

same as, same as - I`m not registered, I make 17.5% less than others but get 17.5% more work because of it..

 

[JohnD]

I don't follow that

surely you pay VAT on the materials, and you charge out at a rate that covers it; but you don't charge (or pay) VAT on the labour element. You will be a bit worse off for other business purchases, like your computer and tools.

But you aren't 17.5% worse off for everything. the others don't "make" 17.5% extra; they just get to hold it for a while.

 

[saxondale]

I don't follow that

surely you pay VAT on the materials, and you charge out at a rate that covers it; but you don't charge (or pay) VAT on the labour element. You will be a bit worse off for other business purchases, like your computer and tools.

But you aren't 17.5% worse off for everything. the others don't "make" 17.5% extra; they just get to hold it for a while.

yeah thats what I said, stock etc "costs " me 17.5% more than the next man but I charge a bigger markup, okay I loose on computers etc ( dont really buy many of them LOL) but the majority of my calls use nothing more than labour and a minimal amount of "bought goods.." so they percieve it as cheaper than "plus vat.."

 

[ban-all-sheds]

Umm.. I'm just wondering where I left my coat....

I was thinking about competitiveness in a commercial environment, where if your customers can't claim back the VAT you are more expensive.

But of course householders can't claim back VAT.....



Ah - there it is.

 

[sparkybird]

OP - if you have been recommended this person by someone you trust, I would go with him. You could always explain that you are unhappy with the 50% upfront and see if you can come to some arrangement. On larger jobs I always ask for 20% in advance for materails and have never had anyone quibble this. I think 50% is a bit much though!

Good luck
SB

 

[Marco1976]

OP - if you have been recommended this person by someone you trust, I would go with him. You could always explain that you are unhappy with the 50% upfront and see if you can come to some arrangement. On larger jobs I always ask for 20% in advance for materails and have never had anyone quibble this. I think 50% is a bit much though!

Good luck
SB

Hi,

I was thinking along the same lines, offer 20% and then it is up to him to take it or leave it.

 

[Chri5]

Marco, Follow it up with a suggestion that your more than happy to pay for the materials (main bulk) on delivery and prompt payment for the labour week by week.

Seems like a decent (and fair) balance.

JD ref VAT

Please remember that as a non VAT reg person, all my expense (materials, tools, computer etc) get booked at the gross cost. So if something on a capital expense cost £1000 inc VAT, it gets shown as £1000.

Being non VAT registered for domestic work does give the non materials element of my work a 17.5% advantage over Mr VAT registered electrician- that if we are like for like on labour costs

 

[TopTrumper]

Find someone else.

You shouldn't pay him until you are happy with the work he has done.

RF Lighting, Have you ever been ripped off?
Do you actually do any jobs, working for yourself?

 

[RF Lighting]

RF Lighting,

Yes

Have you ever been ripped off?

Yes

Do you actually do any jobs, working for yourself?

Yes

 

[TopTrumper]

Im glad i dont work with any fellow sparks like you.
Granted i think half is too much, i take a 3rd.

PS, RF, i have never been ripped off like yourself...figure it out..

 

[RF Lighting]

Im glad i dont work with any fellow sparks like you.

And just WTF is that supposed to mean?


I'm yet to meet a commercial customer who would even consider paying a penny up front.

 

[equitum]

Umm.. I'm just wondering where I left my coat....

I was thinking about competitiveness in a commercial environment, where if your customers can't claim back the VAT you are more expensive.

But of course householders can't claim back VAT.....



Ah - there it is.

Eh B.A.S?? I'm not VAT registered. If I invoice a customer in a commercial environment then as there has been no VAT added to the job, there is none for them to claim back. i.e. The cost is not comparatively more expensive as the VAT was not added in the first place - all things being equal the same quote given by a VAT registered company would be 17.5% more expensive.

As stated elsewhere, if a large proportion of the job is labour, then being non registered gives a competitive advantage especially in a domestic work as you do not have to add VAT on.

On the prepayment business, Chris, why do you let the customer pay the materials direct with the supplier - surely your missing the opportunity to mark up the materials cost (I add on 20%), why should the customer benefit from your account/discount ?!

 

[Taylortwocities]

IMHO its only worth having the customer buy materials if your turnover is getting to the VAT registration point and you arent (and dont want to be) VAt registered.

 

[TopTrumper]

Find someone else.

You shouldn't pay him until you are happy with the work he has done.

You dont know how things are with this spark and prospective client. All you did was dismiss the OPs initial enquiry with a response of what you would have done. Well we are not all trustworthy like yourself.

RF Lighting, I think you have been watching rogue traders to much and have forgot that there is a helluva lot more rogue customers.

 

[saxondale]

look at it this way


my contract says "20% deposit payable .... " but I`ve yet to ask a customer for it, however if they cancel they still owe me 20% - clever