Think I have been doing this completely wrong!

[hazeleyes]

If you're not VAT registered you can't charge VAT, or claim it back.

So instead do you just base your prices to take into account the cost your services are as you have to pay VAT? And if you are VAT registered you charge people an extra 20% on everything (only to deliver it into the money grabbing hands of this government). RIGHT I'm with you now. Thank you so much ladies for clarifying this issue for me! Much appreciated.

 

[virtues2011]

Right Im sort of with you. So for those of us who are not VAT registered, we still have to mark up our prices accordingly in order to make back the VAT.We have paid to buy our goods? So 20% more to account for VAT? YES CORRECT
But the larger businesses that are VAT. Registered can claim a refund back if they haven't sold as much as they've bought?! YES My boss defo mentioned not paying VAT. If it's business to business transactions hence always needing a VAT receipt?

You can only GIVE a VAT receipt if you are registered as your registration number must be shown. If you can buy from a company that is not VAT registered it is better for you but they are few and far between these days.

 

[hazeleyes]

You can only GIVE a VAT receipt if you are registered as your registration number must be shown. If you can buy from a company that is not VAT registered it is better for you but they are few and far between these days.

Wow really 79k sounds like such a large turnover to me lol!!!!
So my boss always asks for VAT receipts so he can claim the VAT he's paid back at the end of the quarter? (He is VAT registered)

 

[Lynne Baker]

Well, sort of!
But don't accuse the government of being money grabbing. That big pot of money pays for the NHS, education, libraries, police, roads, security, prisons, parliament, etc etc.
If you want to point the finger at anyone then you could make a legitimate start with benefit fraudsters.

 

[virtues2011]

Well, sort of!
But don't accuse the government of being money grabbing. That big pot of money pays for the NHS, education, libraries, police, roads, security, prisons, parliament, etc etc.
If you want to point the finger at anyone then you could make a legitimate start with benefit fraudsters.

Now there's a discussion for thought...would it include illegal immigrants also! .. I FEEL A BAN FROM THIS SITE COMING ON! :biggrin:

 

[hazeleyes]

Well, sort of!
But don't accuse the government of being money grabbing. That big pot of money pays for the NHS, education, libraries, police, roads, security, prisons, parliament, etc etc.
If you want to point the finger at anyone then you could make a legitimate start with benefit fraudsters.

Oh they are though, I can't stand the government a lot of the time! It frustrates me, (or benefit fraudsters either). We also pay income tax, council tax.... There's so much tax and so much mis spent tax!!!! The pasty debacle for instance? But that's for another thread? Thanks for all your help today! Been brilliant!!

 

[hazeleyes]

Now there's a discussion for thought...would it include illegal immigrants also! .. I FEEL A BAN FROM THIS SITE COMING ON! :biggrin:

Never that!!!!! lol what would we all do without you?

 

[virtues2011]

Never that!!!!! lol what would we all do without you?

Ha ha ha....I expect if that thread came about I'd be gunned down in the street before the end of play tomorrow! ....

 

[Rinn]

Well, sort of!
But don't accuse the government of being money grabbing. That big pot of money pays for the NHS, education, libraries, police, roads, security, prisons, parliament, etc etc.
If you want to point the finger at anyone then you could make a legitimate start with benefit fraudsters.

Don't forget politicans Lynne.

 

[HairbyCass]

I've taken it the wrong way now because I don't like being taken as a idiot, looking at this topic it has been clogged up with cocky remarks and non constructive feedback! I like to get to the point and issue, I don't wanna be sat reading comments are aren't relevant and piss taking! That's all! So yep I got defensive! Obviously I was going by what others were charging but I also tried not to under charge myself, after 4 months which hasn't been crazy with clients only 30, it has given me a rough guide to look and re think my position and prices etc. I would love to try and be a employee in a salon, but ones I apply for clash with my current job! So I'll keep looking till I can find one that balance, I'm happy to take on advice, but I don't appreciate being made fun of when I am here commenting and being genuine, I only wanted genuine replies back. Not asking for a lot. I appreciate there are highly trained and qualified therapists on here & yes they see loads of underselling therapists who do take the piss out of the industry which makes it harder to keep this industry luxury when others undersell themselves, I may be new but I can also name some salons on my one hand who undersell around me! But I'm clearly stating that I don't wanna be one if those either and I am here because I'm taking my business serious.

TPB, please don't take offence. If you look back at these posts, none of them were aimed at you. There's some really valuable information in this thread.
The rest of the comments that seem snide, bring up a problem that all of us have to deal with, and that is clients leaving for some tween doing £2 treatments up the road. Thankfully most of them are in good humour. But the seriousness is that each time that client leaves to try someone cheaper, we loose a visit, and will probably have a mess to clean up for them when they come back and the job isn't done properly, and because we're good hearted, will feel bad for them, see their embarrassment, and not charge them properly.

On another note, what are you doing that you've only had 30 clients in four months? You may be charging those clients correctly, which is great, but may benefit from looking to promote your business a bit more. Have a read of one of the threads previously posted, the one about promoting your business. There is some excellent stuff in there that won't cost you anything but a little time.

The other thing you can try, which I do, is give my clients 5 business cards with their name on them. They give them to their friends, and when I get all 5 back, I give the original client a free service.
I don't give loyalty discounts, like 10% of 5th service, because my business is still too small to benefit from that, and most of my clients are loyal and have followed me from my last salons.
So now the potential is that I do 5 services that I make say $100 of each one and after making that $500 I give away a $100 service that really only cost me $30 in product and a little time. Then I give them another 5 cards and they pay for their treatments in between until I get that next 5 cards out.

We're all in the same boat here, and we're all here to help each other xoxo

 

[TPB]

TPB, please don't take offence. If you look back at these posts, none of them were aimed at you. There's some really valuable information in this thread.
The rest of the comments that seem snide, bring up a problem that all of us have to deal with, and that is clients leaving for some tween doing £2 treatments up the road. Thankfully most of them are in good humour. But the seriousness is that each time that client leaves to try someone cheaper, we loose a visit, and will probably have a mess to clean up for them when they come back and the job isn't done properly, and because we're good hearted, will feel bad for them, see their embarrassment, and not charge them properly.

On another note, what are you doing that you've only had 30 clients in four months? You may be charging those clients correctly, which is great, but may benefit from looking to promote your business a bit more. Have a read of one of the threads previously posted, the one about promoting your business. There is some excellent stuff in there that won't cost you anything but a little time.

The other thing you can try, which I do, is give my clients 5 business cards with their name on them. They give them to their friends, and when I get all 5 back, I give the original client a free service.
I don't give loyalty discounts, like 10% of 5th service, because my business is still too small to benefit from that, and most of my clients are loyal and have followed me from my last salons.
So now the potential is that I do 5 services that I make say $100 of each one and after making that $500 I give away a $100 service that really only cost me $30 in product and a little time. Then I give them another 5 cards and they pay for their treatments in between until I get that next 5 cards out.

We're all in the same boat here, and we're all here to help each other xoxo

I like the sound of the business card idea, i have loads hanging around now and would be really ideal. And yes, i think when i get afternoon or days off i shall spend it advertising and doing all on that thread. I did print out leaflet price list, and had no clients back from it, maybe paying vista or another company to print out some of my examples of my work on leaflets to maybe pick more interest. I shall spend another evening doing this, plus i had got aftercare printed out on postcards to give out to clients so they cant fold them etc and hide them.x

 

[Lynne Baker]

This might be very, very useful, not to mention informative, witty and well written!

11 Things I Wish I Knew When I Started My Business | BLISSBOMBED.com

 

[TPB]

This might be very, very useful, not to mention informative, witty and well written!

11 Things I Wish I Knew When I Started My Business | BLISSBOMBED.com

Thank you Lynne :hug: