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VAT quote query
karenlisam
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karenlisam
Messages count : 2
Likes count : 0
Registration :
1 November 2010
I am self employed and usually turnover less than 25k pa - profit 8k if lucky
My clients are mainly private ( ie not businesses) so not charging them VAT suits me and them as they can't claim it back so it might lose me business have to add 17.5% to the domestic client price list
I was approached out of the blue to cater for a corporate client in March 2010 and ( just before tax year ended so knew I would be okay with the VAT thresold ) Invoiced 10k but only made 1k off it but was happy with that as its invaluable experience , a hard market to break into and something which should take years to build up a reputation as the big companies tend to dominate.
Have just been approached yesterday by the reps of a big ish company who heard good things about the March event and they have asked me to quote on a big event in December
My conundrum is that the quote will be about 40k ( maybe 8k pre tax profit - don't think thats relevant but there it is just incase)
I'm a little fish in a big pond here . I self assess at the moment - no accountant , have a 24 hour ( well 18 hours now) deadline to submit the quote if I decide to go for it
If I quote then the 40k plus the usual 25k ( on a good year quote) would JUST tip me over the VAT threshold
Can I quote and include VAT in the quote given I'm not registered yet ??? Scared about doing that but I don't see how I can quote without VAT incase I get the job and perhaps tip over the threshold
Don't want to register first thing tomorrow on the basis of a maybe quote , so any advise mucho mucho appreciated
My clients are mainly private ( ie not businesses) so not charging them VAT suits me and them as they can't claim it back so it might lose me business have to add 17.5% to the domestic client price list
I was approached out of the blue to cater for a corporate client in March 2010 and ( just before tax year ended so knew I would be okay with the VAT thresold ) Invoiced 10k but only made 1k off it but was happy with that as its invaluable experience , a hard market to break into and something which should take years to build up a reputation as the big companies tend to dominate.
Have just been approached yesterday by the reps of a big ish company who heard good things about the March event and they have asked me to quote on a big event in December
My conundrum is that the quote will be about 40k ( maybe 8k pre tax profit - don't think thats relevant but there it is just incase)
I'm a little fish in a big pond here . I self assess at the moment - no accountant , have a 24 hour ( well 18 hours now) deadline to submit the quote if I decide to go for it
If I quote then the 40k plus the usual 25k ( on a good year quote) would JUST tip me over the VAT threshold
Can I quote and include VAT in the quote given I'm not registered yet ??? Scared about doing that but I don't see how I can quote without VAT incase I get the job and perhaps tip over the threshold
Don't want to register first thing tomorrow on the basis of a maybe quote , so any advise mucho mucho appreciated
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Rizzo
Messages count : 51Likes count : 0Registration : 5 November 2006You don't know that you'll land the job yet so I wouldn't include VAT.
If you get a signed order then that would be the time to speak to an accountant or phone HMRC to ask about registering - which will take some weeks to get your reg number.
Meantime put the quote in, clearly stating you're not currently registered for VAT and this is therefore not included.
If you do have to become registered in time for actually doing the job then speak to the client and explain that element has changed, it won't make any difference to the amount they actually pay for your work anyway. -
Opus
Messages count : 87Likes count : 3Registration : 4 February 2008Given your deadline, this is probably a bit too late. However, Rizzo's advice seems good to me. I would assume that the size of the potential client means that they will be VAT registered themselves. In which case they won't really care whether you're VAT registered or not as they will be claiming it back if charged. It's normal for quotes to be submitted excluding VAT anyway (at least to other VAT registered companies) as this represents the actual cost they will be paying.Opus Creative Design Ltd -
karenlisam
Messages count : 2Likes count : 0Registration : 1 November 2010thank you x