How will the Vat increase affect your business.

[Stewart]

I'm booked up solid now till end of March, so no ill effect as yet. I have had a few customers, when quoting, wanting to pay cash, but they're the one's that usually can't afford me anyway.

To tie into the vat increase, my addy supplier is putting there usual price increase on at the same time. So to combat this, I've already pre-ordered my addy up till march with a bit to spare, to take the sting out of it.

I have noticed that the customers that would have had all the bells and whistles on their installs have cut back on some accessories, but in general, it's full steam ahead as usual.

 

[Ian]

I didn't seem to earn anymore money when the vat went down to 15% so I don't think I'll lose anything noticeable when it goes up, I'm not vat registered either and tend to get alot of my work by passing my discounts onto customers, on the basis that I get the fitting. Make a bit on addy as I buy in bulk, but happy to pass tile discount on, so increases won't come out of my pocket.

 

[SandyFloor]

dont forget lads this increase is 10% in real terms not 2.5% when you add all the 2.5%s together ie materials to manufacturer manufacturer to supplier supplier to tiler tiler to customers thats 2.5% four ways

Vat doesn't work that way. It is claimed back by vat registered traders all down the line. It only sticks with the final purchaser.

 

[pete f]

yes sandy 10% in real terms to joe public

 

[Daz]

All tile suppliers will have a "no VAT increase" sale during Jan so no initial pain predicted, and my pricing will reflect the manufacturers and VAT increases so, personally, my rates will not suffer.

As far as the market is concerned, I think the slow down will be more prolonged than in previous years so could be end of Feb before "Joe Public" get used to spending out on home improvements again.