Self employed and finding my groove?

[Knappers]

I've been at this for a while now and am not finding myself to be as settled as I think I should.

When I first took the leap into 'selfemploydom' I thought I was going to TAKE OVER THE WORLD (as many probably do).
But 6 years on and I find myself like a Swan floating about while frantically thrashing around under the surface.

My other half recently expressed an interest in coming on-board, to do all the things I want to and don't have time for, but after several months I'm still trying to understand what she's doing other than taking early (semi) retirement

I'm doing gas, heating and plumbing work, no bathrooms, mostly maintenance, boiler swaps, servicing etc.

My issue at the moment is with the boiler replacements as I've been doing one every week and I'm really not enjoying myself (poor me).
I tend to get most jobs I quote and worry that I'm pricing too keenly although small increases tend to swing things hugely the other way. I'm having to compromise on workmanship and it's always a rush to get finished.
Anyone got any advice on trying to sell a quality job to 'loyal' customers who seem happy to 'cheat' with some random nobody just to save £100-£200?

Maybe I just need to do more quotes and play more of a numbers game, so that not only are the customers happy but I am too?

 

[EvilDrPorkChop]

wow - that would drive tax evasion up massively

Do you not think it would do the opposite?

Think of how many people are evading going VAT registered, by whatever means.

 

[Murdoch]

Do you not think it would do the opposite?

Think of how many people are evading going VAT registered, by whatever means.

many VAT reg people take cash now .....

raising the 20% tax threshold to £50k this year is most likely to increase tax take ...

 

[EvilDrPorkChop]

many VAT reg people take cash now ***..

raising the 20% tax threshold to £50k this year is most likely to increase tax take ***

There's more incentive for someone not VAT registered to do that. If your not VAT registered and you're getting your customer to pay for all the materials and just charging for labour - whilst it is legal you could argue that's a form of evasion too.

Just saying, it should be a level playing field for everyone. If you are turning over any decent money (20/30k+) you should be charging VAT. Why is it fair otherwise?

 

[WC1]

Edited and some extra text also

 

[EvilDrPorkChop]

Edited and some extra text also

Think half of your post is missing

 

[Knappers]

Just like this but without being VAT registered in first place.
Would mean I can pass the larger parts costs through the buisness, all I need to do is add explanation to terms and conditions of contract and itemise actual cost on invoice as a disinbersment.
Only downside is not being able to mark up parts but I dont mark up boilers anyway.
Basically means I can increase my turnover by £20K+ without going over threshold.

VAT: costs or disbursements passed to customers

How to account for VAT if you make supplies to your customers, and you pay certain costs that you pass on when you invoice them.

www.gov.uk

 

[Knappers]

Gets a bit more iffy if I did it with all parts but my turnover is very roughly 50/50 parts and labour.
I could compensate for markup with labour cost or separate charge and effectively raise threshold to equivalent of £170K

 

[hometech]

Isn't that fraud?

you can use the kids, parents, grand parents, any number you want. The smart people do this to pay little or no tax as well. For example, a child has the same personal tax allowance as a grand parent. So 2 kids plus wife (if not working) plus parents (if not working) plus grandparents. So £12.750 x 8 so over £100k legally earned without tax having to be paid. If you don't have the people then just create numerous Ltd companies instead, keep them for 3 years then fold them for £10 each. No tax, no VAT no nothing. All perfectly legal. The system has gaping holes to enable the wealthy to avoid tax so they can't close them. They work on your training as good sheeple not to be "unfair" LOL

 

[hometech]

Gets a bit more iffy if I did it with all parts but my turnover is very roughly 50/50 parts and labour.
I could compensate for markup with labour cost or separate charge and effectively raise threshold to equivalent of £170K

so you become a retailer and have all of the consumer protection laid at your door...wow, now that is stupid

 

[Knappers]

Hi @hometech
I think you've missed the point on both instances there.
My plan involves avoiding VAT registration and is perfectly moral and fair (in my opinion)
Your talking about income tax avoidance and if not technically illegal it is certainly wrong (atleast to the extent your suggesting).
I'm no sheep for contributing towards the running of my country and the support of my fellow Countyman (altho I don't love the bill), I'm a strong, grown arse, responsible and decent man!

Acting as an agent actually absolves me of any responsibilities for parts as the customer has effectively purchased them themselves...?

 

[hometech]

Hi @hometech
I think you've missed the point on both instances there.
My plan involves avoiding VAT registration and is perfectly moral and fair (in my opinion)
Your talking about income tax avoidance and if not technically illegal it is certainly wrong (atleast to the extent your suggesting).
I'm no sheep for contributing towards the running of my country and the support of my fellow Countyman (altho I don't love the bill), I'm a strong, grown arse, responsible and decent man!

Acting as an agent actually absolves me of any responsibilities for parts as the customer has effectively purchased them themselves...?

 

[hometech]

multiple companies and or individuals names on receipts removes the vat threshold. Simple.
You need legal advice if you think that you are absolved as an "agent". Are Tesco's "agents" for Heinz? Of course not.
You also need to understand the term "good title". Ask a solicitor to explain or perhaps you can use your search engine "passing good title"

 

[Chuck]

multiple companies and or individuals names on receipts removes the vat threshold. Simple.

Not true.

Staying under the VAT threshold with multiple businesses – Green Accountancy

www.greenaccountancy.com

 

[Knappers]

Your supermarket example is not a valid simily as they are buying and reselling for profit.
In my case I am buying expressly on the customers behalf making me an agent, them my principle and supplier a third party, this is a well set out model within the HMRC guidelines. I would suggest you do your research before affirming your naive opinion as fact.
I don't know how you could have multiple names on one invoice but I do know that unless you can prove that disaggregation of a buisness is for a good and valid opperational reason, that the separate buisness' don't have any financial or operational dependence upon eachother and don't share staff or equipment then you are leaving yourself open to prosecution by HMRC for tax avoidance (if they have reason to suspect that is the purpose of the separation).

Now jog on and try spurting your BS at someone that you may have the aptitude to fool

 

[Knappers]

Sorry for being rude but i'll take any chance I get to shoot someone down that advocates blatent fraud while reveling in their triumph over the common man.
Each to their own but if you take pride in that, then we are just very different people (and I'll call it there)!