Wiring Query

Stoner

I don't really want to get dragged into this, but.

if the 50 included vat and you charged them 60 , did you mark up the cost and vat , if you added ten euro to a cost that had vat on it and then added 30 euro labour bringing it to 90 then did you add vat again ? like your post seems to indicate or am I confused

this means one of two things

you mark materials up by over 40% and add VAT, all good that's your business

or

the customer was charged for VAT twice, as you could claim the vat on the 50 euro back but they can't.


cost and labour are best calculated ex VAT IMHO.

add your margin

add Vat at the appropriate rate/rates.

if it was 50 including VAT and you charged 60.

You get the VAT back on the 50

you effectively pay 40.65 for the materials, if you sold them at 60 you marked the goods up by 47% and then added VAT.

if that's the case the customer would as you say be better off getting the goods directly and paying the VAT upfront

ChippingSodbury

CJ, I'd love to see your VAT Returns :pac:

I do my VAT Returns via 2011's route!

2011

CJ Haughey wrote: »

And as you have illustrated there senario 2 is why a customer can buy materials cheaper.

Scenario 2 only applies to a VAT registered business, they pay €40.65 only because they can reclaim the VAT

Scenario 2 does not apply to the customer as he is not VAT registered so he pays the full €50

ChippingSodbury wrote: »

CJ, I'd love to see your VAT Returns :pac:

I do my VAT Returns via 2011's route!

...and mine have been audited.

CJ Haughey

Getting too caught up in vat which has led to confusion, possibly my bad. Mark up and profit should have been used more. Yes i mark up materials, yes its cheaper if a customer of mine went to a wholesalers and bought the material themselves.
It costs money to keep a van on the road, tools need to be constantly bought, insurance, etc. Something has to pay for that.
Working for a wage is a waste of time, if you are not making profit then its time to get out of business.

ChippingSodbury

I don't think anyone's begrudging you a profit. Your mark-up is based on an ex-VAT figure: you can decide yourself how much it's going to be.

Regarding VAT, as Fr Ted might say "The money was only resting in my account"!

ChippingSodbury

So did yer man get his shed wired or wha??

Stoner

OK enough about VAT.

its over please.