Never truer words spoken than by Thermo.
The trade, without doubt, has an image problem. Do good honest trustworthy work and you'll get a reputation that gains you more business. Through my wife's place of work (office administrator) I get loads of work from single women who simply want to leave a trusty person their house key and to go to work themselves without fear of what they're find when they return home! If they're happy, they tell their friends and family
As for VAT, my suggestion is don't VAT register - to start with at least! It's only voluntary for turnover of less than £60K in any 12 month period. It's extra admin that you can do without when starting up. Also, it simply inflates a residentual persons quote by 17.5% for no benefit that they can perceive! A business customer, however, will get confidence from you being VAT registered and won't care about it 'cos they claim it back!
If business goes really well, and you only do residentual, then try to get customers to purchase there own choice of coloured paint, wallpapers (telling them the quantities they need to purchase), or if it ever comes to it, kitchen units and bathroom suites. They get the confidence you're not going to make a mark-up and you don't have so much cash flow worries and increased turnover taking you towards compulsory VAT registration. For some customers you may wish to make exceptions; if them ordering is going to be a hassle - like older people. When customers buy their own materials, there's the extra security that if they turn out to have no intention of paying you, you loose less! I've been warned that this will be expereianced at some point - though not to me yet as all my customers have been referals and I don't advertise to the public - yet.
Do, do, get advise whether to go Limited Company or self-employed up front. I'm Ltd, Ok, I pay little tax, but I have to pay £700-£800 PA for an accountant (more if I didn't do my own PAYE each month!
If you go Ltd, look to Abbey for bank accounts; zero fees!
Regards,
Neil
The trade, without doubt, has an image problem. Do good honest trustworthy work and you'll get a reputation that gains you more business. Through my wife's place of work (office administrator) I get loads of work from single women who simply want to leave a trusty person their house key and to go to work themselves without fear of what they're find when they return home! If they're happy, they tell their friends and family
As for VAT, my suggestion is don't VAT register - to start with at least! It's only voluntary for turnover of less than £60K in any 12 month period. It's extra admin that you can do without when starting up. Also, it simply inflates a residentual persons quote by 17.5% for no benefit that they can perceive! A business customer, however, will get confidence from you being VAT registered and won't care about it 'cos they claim it back!
If business goes really well, and you only do residentual, then try to get customers to purchase there own choice of coloured paint, wallpapers (telling them the quantities they need to purchase), or if it ever comes to it, kitchen units and bathroom suites. They get the confidence you're not going to make a mark-up and you don't have so much cash flow worries and increased turnover taking you towards compulsory VAT registration. For some customers you may wish to make exceptions; if them ordering is going to be a hassle - like older people. When customers buy their own materials, there's the extra security that if they turn out to have no intention of paying you, you loose less! I've been warned that this will be expereianced at some point - though not to me yet as all my customers have been referals and I don't advertise to the public - yet.
Do, do, get advise whether to go Limited Company or self-employed up front. I'm Ltd, Ok, I pay little tax, but I have to pay £700-£800 PA for an accountant (more if I didn't do my own PAYE each month!
If you go Ltd, look to Abbey for bank accounts; zero fees!
Regards,
Neil
