BUSINESS WIPEOUT? Late VAT REGISTRATION - HOW MUCH It COST ME.
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- เผยแพร่เมื่อ 12 ก.ย. 2024
- Taking your eye off your finances could cost you your business. This is my story of missing the Vat registration threshold and how much it cost me.
Thanks for watching.
Hands down one of the most sensible video I have seen on spewtube. This is what I like about your channel, there is no bullshit.
Thanks a lot👍 wasn't sure it was a story to tell as it was an idiot move but maybe it'll help someone. Cheers for watching 👍
Open, up front, honest. Just three reasons I like your channel buddy. 👍
Thanks 👍 easiest way to be I recon
I don’t have a business, I pay normal workers tax and have no knowledge or interest in vat and yet I just sat and watch you speak eloquently about vat and thoroughly enjoyed it!! Great job!
That's very kind of you, I often think life could be easier being employed but I do like the challenges Keeping a business going brings. Thanks again for watching 👍
I’m pleased you put your seatbelt on to talk about VAT, I always feel the same when it is mentioned 😂
Anything for some support 🤣👍
What a great story especially for new comers . In Australia we have a good and service Tax of 10. % turn over 75k when it kicks in .
You are spot on
Being registered you are professional in the eyes of commercial customers
gets rid of tight arse customer
you make a bit extra when deducting purchases especially if you buy a van
disadvantage of course the companies that are not registered are cheaper for residential clients, but then again they are the tight ones!
Perfect comment mate and right about the private work👍 thanks for watching
Everyone should be vat registered from the start up of business in my opinion it just makes it all fair .
If a garden costs 10k for us now it's 12k so for us it's a lot of money Nathan. It's a very continuous subject it can catch you out I was lucky I kept an eye on earnings so I caught it in time.if your commercial great private not good mate .It makes things on private work an unfair playing field. I just did it as I had to spent years and years worried about it.Some pay vat some don't in my mind every one should pay from day 1 be so much easier and more fair .
Great video business isn't easy is it mate good video 👍
I remember your video about it Justin, would definitely be a fair if everyone payed a lower percentage and a much lower threshold, basically anyone with a proper business. Hope you're doing well mate👍 keep up the great work
@LewisgardenservicesLtd
I'm good Nathan not looking forward to winter though mate .
VAT should be automatically registered for you when you start a business in my opinion. Would eliminate a lot of worry for business owners .The playing field would be fair aswell just my opinion Nathan .Hope your doing alright mate 👍 👌
@brickrightbuildinglandscaping you're right Justin and would get the standards up too hopefully in work and reliability etc👍
Wise words, we've just bought a one year old pick up, that's £6,600 back in vat, yes when we started charging vat, out of 70 regular customers not one refused to pay it. Even though we've really become a money collector for the government.
Working for the government 😬 nice savings on vehicles tho👌 cheers for watching 👍
I've been VAT registered for many years. It wasn't compulsory and I wanted to move in a commercial trajectory.
Im on a scheme where I keep 2/5 of the VAT I charge. Good if you don't buy many materials and don't use a lot of fuel. I only claim back on purchases 2k or above, including VAT.
It works out well for me. We do the sums each year. Just had 7k back for the Isuzu.
That the flat rate scheme? Definitely an advantage for commercial work👍👍
@LewisgardenservicesLtd is worth looking at. I tend to get customers to buy their own materials if its anything significant. Good video, mate.
@@dagtailgroundmaintenance thanks Carl...I'll study the figures👍
Cheers Nathan, really interesting video. Only been in the game a few years but loads of work on so often think about growing things. Thanks bud.
Go for it if you've reliable help😬 gotta be in it to win it. Thanks for watching 👍
I registered a few years ago, it was more stressful trying to stay under the threshold all the time then just actually just biting the bullet and registering. I buy a lot of materials for fencing, so very easy to go over the threshold. It can be a pain, but there are benefits, and yes, people will take your business more serious if you are VAT registered. Glad it all worked out for you, it's funny how we humans worry about things (20k) when in reality if you just sort things out it is never as bad as you think.
Totally agree with everything you said mate, especially things working out in the end😅 cheers for watching and your comment 👍
I didn't register so I haven't got a contract with the tax office I asked before hand where does it say in law that you have to pay it in the first place they couldn't find anything and that was the tax office I've learnt never give your name your in a contract so I don't pay TV c tax gas electricity water but make sure the rent is paid
I can confidently state, that at 64, I am in no danger whatsoever of breaking the VAT threshold.. Very interesting vid though Nathan 👍
Thanks for watching, at 64 I'd just like to still be around 😅👍
What a great informative video mate, glad it's working for you, have a spend up at grounds fest ! Just hope Mrs Jones is still happy with the vat 😂
Mrs Jones loves it🤣
Thank you for sharing Nathan I’m trying so hard to stay under the VAT threshold
I’ll be honest because I don’t mind being honest about money but I’m turning over around £70k ish so always keeping an eye on what I’m doing etc
When you said £6k I felt relived for you not ending up paying loads more
Great topic and really helpful for a lot of people
I’m at Gatwick airport now just heading to Cyprus for a week I need a break from work etc I’ll be back in just over a weeks time 😎🌴☀️
Have a good week buddy
70k fair play mate👍 enjoy the week away 🍻
@@LewisgardenservicesLtd thank you buddy 🙌🏼
@@THETATTOOGARDENER83bring the sun back with you👍👍☀️☀️
@@LewisgardenservicesLtd will do buddy 😎☀️
I registered voluntarily because when I started up I spent a load on gear and I got it back. Which I then used to buy more gear.
My idea is that I’d rather start off 20% more expensive as I started off with no customers. Now the business is growing and I’m now over the hump. I’m pretty savvy with digital accounts in and it is basically zero effort being vat registered.
I get to state I’m a vat registered limited company and fully insured. Of course, It doesn’t mean anything about my quality but that perception is invaluable and did I say everything is 20% less expensive? That's a biggy.
Solid video. (edited because my original comment was done on a phone and full of autotroll typos>
Makes perfect sense, bet you're busy as anyone not registered too👌 cheers for watching and your comment 👍
@@LewisgardenservicesLtd As busy as I want to be - the business operates two days a week whilst I'm filling up and learning about running this kind of business. The rest of the time I have two part-time jobs in related areas (teaching trees and woodland stuff and the other I am forester and spend days smashing down trees) - the business will become the full time job over the next few years. I've had a few businesses over the years and I know the kiss of death is taking a salary too early. In startup mode it's about learning the trade, the business, being efficient with costs, growing the customers and building up a nice war chest full of at least one years burn.
@lifeoftreedom sounds like you've a plan and got it sorted 👌
I haven't got enough fingers to work that out😂 Glad it worked out in the end.
😅 cheers, most things do to a fashion in the end. Thanks for watching 👍
Great video, many companies dont understand the vat threshold is a rolling 12 months period not your tax year turnover. Normally if you go over the threshold temporarily and dont expect to go over again you can apply for an exemption from registration.
Yea, month on month is the way but mine always averages out, no 12 months dropped back under from then tho. All sorted now tho😅 thanks for the comment👍
In Ireland, depending on accountants, you would definitely get away with not paying it in and around the threshold. But it is a lot of cash instead of bank transfers etc. I guess businesses really prefer transfer payments, but i do a lot of private households personally. Cheers & good informative video. Happy gardening 👍
Maybe I'll move over there😅👍 bank transfer is easier for us at the moment, gotta get it in to invest etc. 👍👍 Cheers for watching
just make sure you keep your VAT payments as a separate entity and don't be tempted to dip into VAT cash and think i will just pay it back in later . has caught many a business out in the past when using it as ready cash up front and not having enough when Quarterly VAT payment reminder lands in the post.
Yea sound advice 👍 we've a buffer zone in the account and generally know what's what, 3 months soon goes 😅🙄 cheers for watching 👍
Grest advise Nathan. Im going to have to register for vat soon, unfortunately! It's something I want to do sooner rather than later. Vat tax, etc, is still a very confusing topic for me. The account sorts it all out for me.
Doing well then mate👍
@@LewisgardenservicesLtd I've been doing alot of large landscaping so it pushing my turnover up massively.
Everyone or know one should have to pay VAT imo. Makes being competitive with people 20% more difficult.
Yea, level the playing field at maybe a lower rate🤔 who knows
I watch another channel where the guy goes in and tries to fix up lawn care companies. The first thing he always does is put up prices. The customers you don't really want end up leaving, and the good ones usually have no problem accepting.
Definitely, a lot of mine are still cheap in 2024 prices and will be having a cull next year. Thanks for watching 👍
great expalnation nathan, keep it up mate. Are you taking on domestic work such as big conifer hedge trims at all ?
Thanks, yes I do in winter but depends how big they are now. Thanks for watching 👍
Im well under the threshold still but someone mentioned to me about the flat rate vat scheme? Probably something to speak to my accountant about
I believe it takes out the calculation of sales Vs purchases and you pay a lower percentage of turnover regardless. Suppose good if you don't buy much. That's off the top of my head tho🤔😅
Hi mate I know it’s off topic but I watch a lot of your vids and you seem to know what your talking about . How much would you work out how much to charge for a scarifying and holotyne aerating a 16x16 lawn
Thanks mate 👍that's something I've never gotten into, we'll I have done some scarifying but I'd say allow enough time and price accordingly then bang a good 20% or so on top to make it worth your while
Mate this exact same thing happened to me but I had to track back 2 years. Put me in the doctors for anxiety and stress. Proper nightmare. 18k total after claiming back.
We’re just tax collectors for the government!!!!!
I’m finding it harder to get work now.
The threshold is way too low.
Good luck mate
That sounds rough 😬 while I was under it I thought the threshold should be way higher, now I'm in it I think it should be lower or include everyone at a lower % to level the playing field. Cheers for watching 👍
I have had to go vat registered, not easy, my customers didn’t want to pay for it, but they have, so I continue on with the business, the only thing that worries me is, is if we de_register , then you have to pay the vat back on capital purchases
Glad it worked out, If I did a lot less and went under threshold I don't think I'd de- register. Thanks for watching 👍
Funny how customers will absorb VAT but get miffed when you say costs re going up 10% to cover your costs 😂 great chat 👍🏻
You're right 😅
Good man 💪💪
Cheers for watching 👍
I don't understand how being VAT registered changes the efficiency of getting jobs done i.e. ordering in materials. Surely it is the same regardless?
I am no VAT registered as I don't need to be. With landscaping jobs I simply quote for materials and the services, and then order the materials in for the job. How would being VAT registered make my life easier in that regard?
Materials increase turnover so if you're trying to stay under Vat getting the customer to buy them means just your labour gets changed, now if I want to slot in a 3 grand job and half that is materials I can just go and get it, get the job done and move on without worrying about bumping up the turnover to the vat threshold. If you're doing a bit of landscaping 90 grand threshold will soon be reached as materials are expensive. Cheers 👍
People ask my Age and I say 21 + VAT
😅40+ for me. Good old Vodka And Tonic
Bigger problems at the end of your garden path;)
There normally is😅
Surely it's not worth being VAT reg if mostly working forn domestic clients
Ideally not, I could do less and stay under it but doing ok so it's just another part of the business I guess. Cheers for watching 👍
How come you wanted to stay under the threshold? I started out a few years back and my goal was to smash over it 🤣
It just seemed like it would be a headache and historically I know private maintenance wouldn't want to pay it, now everything is so expensive anyway it doesn't matter so much now. Cheers for watching 👍
I will have to work till I prob 70, but can sleep at night knowing I not got to save thousands for v.a.t.must have a hefty tax bill as well, not knocking u , u be retired when I still knocking me pan out.
It's all relative to earnings the tax and vat, more you do the more it costs 🙄 some retirement/ downtime would be good tho😅 cheers mate 👍
@LewisgardenservicesLtd I going down to 4 days a week , going for quality of life I been knocking my pan out for yrs , not much of a business man , always put customer first and to cheap , but as u say it all relative to earnings so I dnt get clobbered and what the eye dnt c the heart dnt grieve😉
@PaulMills-ue9eg quality of life is the most important 👌 enjoy
Don't bother with tax just put it in your pocket.
That's ok if you're doing something on the side I guess, businesses are better when invested in and for that you need capital. Government loves the grey economy tho 😅 cheers 👍
😳 I have a lot to learn.
We all do as we go along mate, some lessons are tougher than others tho that's for sure😬😅 cheers for watching 👍
@@LewisgardenservicesLtd very true, Nathan. While I won't share the figure, I have earned a lot since starting this several months ago. I know I'm way under the VAT threshold but I'm now thinking about landscaping jobs in the future. The ones of done have been a little tedious because the customer is buying the materials and it's not always what it should be.
@aspectratiogardenservices really depends on the business you want to build. I should have done it years ago and got into the real game
@@LewisgardenservicesLtd I have my business goals and I want to build a successful, reputable and professional business doing something Iove which I believe brings fruit when you love what you do.
Most of my jobs are big ticket I have have more of those each day then mowing etc.
i just off loaded some work
We're all trying to do that🤣👍
Am i right in believing that you can claim 18% of a total cost of a piece of kit over 5 years as long as you have receipts so over 5 years that piece of kit has only cost you 10% of its original cost its capital allowance
I clearly sounded like I knew what I was talking about 🤣 doubt my accountant would answer that one. Will ask the wife tho 🤔😅
@@LewisgardenservicesLtd That's my belief anyway Nathan I claim this back on my returns it's a tax relief for essential tools for your business without them we are nothing mate and it allows to replace after 5yrs
@neilgreen9285 we talking depreciation on goods?
@@LewisgardenservicesLtd I suppose so but is a capital allowance Nathan
Anyway i love the videos Keep em coming Nathan and have a good week
👍👍
Cheers 👍
Call the tax office and ask them where in law does it say you have to pay tax I did they couldn't find anything so I said thank you and hung up so I don't pay any
Fair play 💪
@@LewisgardenservicesLtd they are only a corporation they need a contract from you so never give your name or sign anything even councils police govt all corporations
Have to make another business but then it becomes more hassle than it’s worth
That does sound like hard work😬😅 cheers 👍👍
@@LewisgardenservicesLtd it is not worth it 🤣 Should just be vat registered but when you haven’t got a wife that helps with paperwork it’s stressful 🤣 Well stressful full stop paperwork crap! Happy days when your working and then all that crap comes it makes you feel like packing up for a few weeks 🤣
@benhowlett7693 always something to stress about 😅
Should of got a decent accountant
We both could have done more and sooner but unfortunately it happened 🙄 cheers 👍
@LewisgardenservicesLtd We get this a few times with our clients....when we do the accounts it's the bad news that VAT is exceeded....its what the accountant can do after that....with us...its normally favourable to the client.
Only thing I'd put on the accountant was time taken to look at accounts, everything else was our fault. They helped out after tho. Show this to your clients who are not in the ball with it😅