Thanks for your comments, Thomas. Even the 8%, as you put it, did actually have a bearing. 8% of a regular job of £4,000 still works out at £320 more than a competitor, and thus my client not being successful with his quotes.
I think it would be more realistic to my client's business if reaching the VAT threshold was based on his sales invoices less "direct cost" expenses such as materials, i.e. based on the labour/skills portion. In effect, that is happening when my client's customer pays for the materials direct.
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Even 8% is too high
Thanks for your comments, Thomas. Even the 8%, as you put it, did actually have a bearing. 8% of a regular job of £4,000 still works out at £320 more than a competitor, and thus my client not being successful with his quotes.
I think it would be more realistic to my client's business if reaching the VAT threshold was based on his sales invoices less "direct cost" expenses such as materials, i.e. based on the labour/skills portion. In effect, that is happening when my client's customer pays for the materials direct.