VAT threshold for businesses -does it hold back growth

[motorbiking]

Do you have to understand an implication?

More reason to benefit from both warranties

The obvious intention is to make the consumer believe that the builder is passing on his trade discount, because the supplier is happy to provide him with a trade price quote and then a real price quote.

The builder presents the trade price quote implying this is the price he pays.

That is unlawful

 

[Ivor Windybottom]

It goes on across all industries.

I know someone who worked at a very large UK car insurance company. They were getting a big discount from their approved repairers, but were reclaiming the full undiscounted amount that they'd never paid from the other driver's insurers where their own policyholder was not at fault. They were making a profit from car crashes.

It's got bugger all to do with the VAT threshold though!

 

[blup]

The obvious intention is to make the consumer believe that the builder is passing on his trade discount, because the supplier is happy to provide him with a trade price quote and then a real price quote.

The builder presents the trade price quote implying this is the price he pays.

That is unlawful

They don’t pass on their discount, trade or retail, a quote is a quote

 

[blup]

It's got bugger all to do with the VAT threshold though!

A quote without vat is deemed to include vat, but many add it on.

 

[Murdochcat]

The other point about VAT is that HMRC can decide which 12 months to review your turn over.

 

[motorbiking]

They don’t pass on their discount, trade or retail, a quote is a quote

that isn't how it works

merchant advertises Retail Price. (Radiator 600 x 600 £94 + vat)
Builder gets a trade price quote to present to consumer. £94 - trade discount = £74 + vat
Consumer then says yes thinking the trade price quote (which is cheaper than the "retail price" is the trade price quote.
Builder then asks seller to Finalise the "quote" where additional discount is applied. (£50 + vat)

Trade Price quote is not the trade price paid.

Now why would someone need a Trade price quote that isn't the trade price?

 

[Ivor Windybottom]

A quote without vat is deemed to include vat, but many add it on.

...which has bugger all to do with the VAT threshold!

How VAT works

How VAT works, what VAT is charged on, VAT thresholds and VAT schemes.

www.gov.uk

This thread's gone well off the rails, I suspect there aren't many small businesses here, many don't have a clue what it's about.

 

[motorbiking]

sorry about that - I was partly responsible.

 

[Ivor Windybottom]

The other point about VAT is that HMRC can decide which 12 months to review your turn over.

It's a rolling 12 months. So peaks and troughs could trigger a registration. In reality, probably not as they'll only get annual accounts if you're not VAT registered.

But there is a pre-budget rumour of 3 monthly accounting for all small businesses, like we've all got nothing better to do!

 

[blup]

...which has bugger all to do with the VAT threshold!

How VAT works

How VAT works, what VAT is charged on, VAT thresholds and VAT schemes.

www.gov.uk

This thread's gone well off the rails, I suspect there aren't many small businesses here, many don't have a clue what it's about.

It’s the opposite, threads that don’t find their way back to brexhit, trumpy, the middle east, asylum, far rage, Starmy etc are the exception.

 

[motorbiking]

The losers will be service providers. The winners will already have registered for VAT.

 

[Elsa TLC]

Not read the thread but yes its held me back.

This is before my Illnesses and recovery that naturally kept me below the limit.

I took the whole summer holidays off work one year because I reached that limit and wasn't ready mentality rise to deal with it.
It wasn't that I could afford it, but I had to.

There have been a couple of times thst I was planning the leap into VAThood only for my work to drop off.

This was a time I thought it would be beneficial, but wont ever want to do it now.

I wont get into cash work as thats just not me.