Corgi VAT Saver

Corgi VAT Saver

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A plumbing client has come across http://www.corgivatsaver.co.uk/index.html. Has anyone used it? Does it work?

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By Peter Kilvington
18th Sep 2013 10:25

Client uses it

I have a client that uses it very successfully.

The way they use it is to increase the margin on the job.  They will give a VAT inclusive quote of say £6,000 which would normally be £5,000 plus £1,000 "notional VAT".  Invoice may well end up being £5,500 plus £500 VAT.  Margin increase of £500 with the quote being competitive at a normal VAT inclusive rate.

Another way to maximise its use would be to quote £5,500 to gain the work and maintain your normal margin.

Obviously it only works on certain installations and your client needs to look at what they install before taking it up.

As the accountant you could, depending on the product mix, increase your clients GP by a couple of % points.  Not sure how much this is worth to your client.

 

Another area of interest to you is where this scheme is used by your client in commercial premises.  You could try and link up with you client to use the data he has on low VAT installations to businesses to ensure that capital allowances are claimed correctly.  The low VAT installation often qualify for enhanced capital allowances.  Not sure if you want to do this but it is a thought.

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