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Should I charge vat?

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Hello

Im fitting a kitchen and I have used a non registered subbie for the electrics he charged me £200 labour only, now as im registered should i charge my customer vat on my invoice for the £200. eg charge customer £200 + 20%  = £240

Thanks

Replies (21)

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By Matrix
13th Feb 2020 22:22

Yes of course. Although I would charge the electrician out at a higher rate to compensate for arranging the work and being on the hook if something goes wrong. Up to you.

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Replying to Matrix:
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By hwads
13th Feb 2020 22:58

Thanks for that, ok another one for you. I ordered a skip £250 inc vat should I charge the customer £250 + vat? They say I shouldn't as they will be paying vat twice.

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Replying to hwads:
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By JoF
13th Feb 2020 23:09

How do they know what you paid?

Either they order the skip themselves and pay the skip company price, or they order it through you and pay your charge for it, which would usually include some form of margin to cover your costs of arranging it, admin etc. Whatever margin you charge is entirely up to you.

Don't forget CIS deductions for the subbie in your first Q.

Suggest as you are struggling with such pricing and vat issues that you employ the services of an Accountant....one could save you from an expensive mistake or three.

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Replying to hwads:
Psycho
By Wilson Philips
13th Feb 2020 23:09

How does your customer know what the skip cost? What agreement was reached as to who is responsible for getting rid of the waste?

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Replying to Wilson Philips:
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By hwads
13th Feb 2020 23:24

i ordered the skip and paid with my company debit card but the skip man left the receipt with the customer which is not a problem, on my invoice i have charged vat on the £250 and the customer is saying she shouldnt be paying vat twice, but i think I'm right
eg
skip £208.4 + vat = £250
my invoice £250 + vat = £300
am I correct or are they correct?

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Replying to hwads:
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By JoF
13th Feb 2020 23:33

Read my response.

She isn't paying the vat twice. She is paying skip price, plus your fee (call it admin fee, call it the customer is a pain fee, this is my beer money fee, whatever), then plus the vat.

Tell the skip company to never leave the invoice with a client again or you will find another skip supplier.

You can of course just charge the customer the same as the skip company if you choose, to stop her moaning.

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Replying to hwads:
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By paulwakefield1
14th Feb 2020 09:28

If you intend to charge her cost with no mark up then she is right as the cost to you is £208.40.

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Hallerud at Easter
By DJKL
13th Feb 2020 22:49

Presume not a new build house?

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By frankfx
13th Feb 2020 22:58

Depends who your " customer" is.
Could be zero rated.

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By hwads
13th Feb 2020 22:59

No not a new build and customer isn't zero rated.

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By JoF
13th Feb 2020 23:41

I need a new kitchen, perhaps you could fit one for me.

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Replying to JoF:
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By hwads
13th Feb 2020 23:53

Ill happily give you a quote if your local, Im near Leeds

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Replying to hwads:
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By JoF
14th Feb 2020 00:19

I meant for free.

Given you are asking Accountants on an Accountancy forum (for Accountants) for free advice, have had fee advice and yet not even a word of thanks to at least one of them, I thought I might get a free fully fitted tap at the very least.

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Replying to JoF:
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By hwads
14th Feb 2020 08:18

JoF wrote:

I meant for free.

Given you are asking Accountants on an Accountancy forum (for Accountants) for free advice, have had fee advice and yet not even a word of thanks to at least one of them, I thought I might get a free fully fitted tap at the very least.

Read my response.
I have. all I wanted was a yes or no answer

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Replying to hwads:
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By JoF
14th Feb 2020 09:27

Typical!

Rude. Ignorant. Freeloader.

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By Tax Dragon
14th Feb 2020 08:40

If you hired the skip without telling her you'd charge her extra for it (and how much), I'd say the whole cost is on you.

You've provided a free skip, just as several people (now including me) have provided free advice.

If she's offering to cover your cost, she's being very kind. Will you offer the kind folk in here the same? Cover our costs?

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By MJShone
14th Feb 2020 09:55

hwads - contributors to this site get upset when someone who isn't an accountant comes on wanting free advice. it's meant to be for accountants to discuss matters with other accountants.

However, the question you asked is pretty straightforward. As paulwakefield1 has said - you charge your client £208.40 plus VAT for the skip and £200 plus VAT for the labour. That all assumes you're simply passing on the cost to the client.

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By frankfx
14th Feb 2020 10:19

For those of us who know;
VAT is a simple tax.

We know the difference between a biscuit and cake. Not because of the look and the taste... but for VAT purposes

We know that workers steel toed safety boots are zero rated safety equipment, so long as you buy from the correct vendor!
Otherwise vat is charged.

The OP may want to avail himself of some professional VAT advice and guidance.
We do not know if the OP is on the Flat Rate VAT scheme, if not the Input VAT on the advice should be recoverable. Win win.

The rewards may well be significant.

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Replying to frankfx:
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By MJShone
14th Feb 2020 10:39

That's the risk the general public take in getting advice on AWeb. They have no idea whether someone giving an answer knows what they're talking about and have no one to sue if the "advice" is wrong.

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Replying to MJShone:
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By paulwakefield1
14th Feb 2020 11:50

MJShone wrote:

That's the risk anyone takes in getting advice on AWeb. They have no idea whether someone giving an answer knows what they're talking about and have no one to sue if the "advice" is wrong.

Corrected for you. No need to thank me. ;-)

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By frankfx
14th Feb 2020 10:19

For those of us who know;
VAT is a simple tax.

We know the difference between a biscuit and cake. Not because of the look and the taste... but for VAT purposes

We know that workers steel toed safety boots are zero rated safety equipment, so long as you buy from the correct vendor!
Otherwise vat is charged.

The OP may want to avail himself of some professional VAT advice and guidance.
We do not know if the OP is on the Flat Rate VAT scheme, if not the Input VAT on the advice should be recoverable. Win win.

The rewards may well be significant.

Thanks (0)
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