Fact – The UK has the largest VAT threshold in the European Union. at £85k.
Compare this with the Germans at £15k. 🙄
Good or Bad?… depends on your outlook and ambition I guess.
“I’d like to grow my business but when I cross the VAT threshold I’ll immediately become less competitive, or less profitable or both” – Sound familiar?
Now, I’ve no stats here on which to base my hunch but I’m guessing a fair few boiler installers in the PlumbAgent Network and the wider trade are confronted with this problem right now.
Are you grappling with the VAT Conundrum on a recurring basis?, and have you decided what to do?
Competition in the UK boiler installation market has recently intensified with the emergence of digital disruptors offering prices for boilers including installation to anyone who cares to use a Google search engine.
So here’s the thing… Do you Grow or Do you Slow?
Seems like it cuts both ways huh?
QUESTION – Can you afford to cross the threshold and put your prices up 20% right now in the face of such extreme digital competition?
If your answer is NO and there’s only you that can answer that question, how do you find legitimate (and legal) ways of putting bread on your table without incurring the wrath of the VAT man?
QUESTION – Are you still making money on the product and labour elements of the job or are you effectively buying and supplying the gas boiler for nowt as a service to your customer?
Internet price visibility on boilers couldn’t be any clearer making it harder than ever now to make a turn on the materials… right?
Breaking through the VAT barrier also brings with it a whole lot more work in the way of admin, complication and cost particularly if you now have to hire an accountant or subscribe to an ever growing list of online accounting apps.
There’s also MTD (Making Tax Digital) to consider… at least those under the VAT radar can look forward to a short stay of execution before that particular tsunami hits 💦Download the App
So… what’s to do?
One way to reduce your turnover and to stay under the VAT ceiling is to use the PlumbAgent boiler replacement app and work labour only, reducing your turnover and allowing you to make your money without having to worry about the price of combi boilers.
PlumbAgent will pay you a bonus 2% cash back on every job you complete and any jobs you refer through the app are guaranteed to come straight back to you for survey and installation.
There’s lots more benefits to be had for being part of the PlumbAgent Network but I thought I’d talk to you first about this one.
It’s pretty important… right?
As the market digitalises further, as it surely will why not become part of the PlumbAgent Installer Network, learn to fight back and stay under the VAT threshold while you’re at it.
Thanks for reading.