Pricing for jobs before VAT registry

[groucho]

I'll be VAT registered on the 1st June. Been trading for years but there used to be two of us, anyway, I digress.
Recently I have priced for a few jobs and am still pricing for jobs. The trouble is with some of these jobs, although I'm pricing for them now, we will not be able to do until after June 1st. How can I give them a price with the VAT when I'm not registered yet and don't have a number? If I don't though I'll have to pay the VAT and lose money.

Am I missing something, this doesn't sound right.

[HRG]

Quote them with VAT shown, it'll be due when you do the work anyway so it'll have to be charged.

[groucho]

Cheers. Can't say I'm over the moon about it, just makes me less competitive.

[HRG]

Doesn't matter to VAT registered businesses, we can claim it back.

[groucho]

HRG said:

Doesn't matter to VAT registered businesses, we can claim it back.

True, but most of my clients are from the domestic side.

[anonymous-user]

Your invoices have to have something along the lines of "VAT registration applied for" on them. Check with an accountant.

[anonymous-user]

groucho said:

HRG said:

Doesn't matter to VAT registered businesses, we can claim it back.

True, but most of my clients are from the domestic side.

See my reply in your other thread!

[singlecoil]

Dave_ST220 said:

groucho said:

HRG said:

Doesn't matter to VAT registered businesses, we can claim it back.

True, but most of my clients are from the domestic side.

See my reply in your other thread!

The OP is pricing for jobs, not selling stuff on Ebay. This means that he is supplying labour. There will be no input tax to reclaim, so when he registers he will be anything up to 15% more expensive than a contractor who does not have to charge for VAT. Now, VAT registration may impress your customers, but if you are a contractor supplying labour then VAT is a plague that should be avoided.

[Simpo Two]

I'd have thought the obvious thing to do is say 'If you confirm your order and pay for it before 1st June (ie in Advance) you'll save 15%'. Sell it as an early order discount.

[groucho]

Simpo Two said:

I'd have thought the obvious thing to do is say 'If you confirm your order and pay for it before 1st June (ie in Advance) you'll save 15%'. Sell it as an early order discount.

This brings up a question. I was of the understanding that as long as the customer is invoiced before vat registry they escape the vat on labour charge, so in my case before June 1st. Is this right?

[Simpo Two]

groucho said:

Simpo Two said:

I'd have thought the obvious thing to do is say 'If you confirm your order and pay for it before 1st June (ie in Advance) you'll save 15%'. Sell it as an early order discount.

This brings up a question. I was of the understanding that as long as the customer is invoiced before vat registry they escape the vat on labour charge, so in my case before June 1st. Is this right?

I believe so. Before 1 June your invoice will say '£100'. After 1 June it will say '£100 + VAT £15 = £115'. But do take a second opinion just in case I'm wrong.