Festival Cost plan (to VAT or not to VAT) |
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rosssss224
Registered User Joined: 25 July 2012 Status: Offline Points: 447 |
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Posted: 15 February 2019 at 1:21pm |
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Submitting a cost plan / cost breakdown to a small indie festival. Should we be including VAT in each line?
Typical items will be: sound system hire (£xxx) van hire (most likely from say enterprise...) diesel (£xxx) decor materials from bandq etc...(£xxx) We are not a VAT registered company just hobbiests but don't expect that doesn't make us exempt from anything. Most of these items will have vat paid on them at time of purchase. However things like our time / sound system hire I am not so sure. Any help appreciated. And apologise if the wrong category.
Edited by rosssss224 - 15 February 2019 at 1:23pm |
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4D
Old Croc Joined: 13 November 2008 Location: Winchester Status: Offline Points: 4257 |
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if your not vat registered there is no need to include the vat on your estimate or invoice. the 20% you pay out on goods or services has to come out of your margin.
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DMZ. "The bass was intense. Girls were literally running up to stand next to the subs"
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rosssss224
Registered User Joined: 25 July 2012 Status: Offline Points: 447 |
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That's fine and as expected. Hiring the rig / our own time is where I'm unsure. Just want it to be kosher / professional.
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jacethebase
Old Croc Joined: 23 September 2009 Location: Somerset Status: Offline Points: 5697 |
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If you want it to be professional go VAT reg, Charge sensible money :)
Chances are is if you do this. They will just go with a hobbyist to save money. The festival game is totally bonkers. They would rather pay an extra £100,000 for a random artist than £220 a day for a monitor engineer that knows the difference between a 5D and a mix whizz.
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www.wedding-production.co.uk
www.stage2sound.com |
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4D
Old Croc Joined: 13 November 2008 Location: Winchester Status: Offline Points: 4257 |
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If you want to look pro .......................
Along with your quote attach a copy of your public liability insurance & your RAMS (risk assessment method statement) documentation. |
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DMZ. "The bass was intense. Girls were literally running up to stand next to the subs"
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JonB67
Young Croc Joined: 22 April 2016 Location: UK Status: Offline Points: 1376 |
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This. Technically you don't need written rams unless you've got 5 employees but it's good practice.
Not just pro.... if you want to look serious and capable. Edited by JonB67 - 16 February 2019 at 12:25am |
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dylan-penguinmedia
Old Croc Joined: 14 April 2011 Location: Brighton Status: Offline Points: 4576 |
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if you’re being charged let’s say £2000 + VAT, (2400 inc) for something, and you want to invoice that on, you just invoice for 2400 (or ideally add your margin, don’t pass on trade discounts! If you want to discount, do that as a whole later).
Anyway, point being - don’t even mention the word VAT ANYWHERE on your invoice. Line totals then grand total - saves confusion. As soon as you start saying “includes VAT” they may well be expecting a VAT no off you etc.
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ceharden
The 10,000 Points Club Joined: 05 June 2005 Location: Southampton Status: Offline Points: 11776 |
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As above. If you're VAT registered you should know what you're doing with VAT. If not then ignore the VAT component and just do all calculations on the inc VAT costs.
If you're working with a customer who is VAT registered (and you're not) and you want to allow them to claim back the VAT on your costs, the only option is essentially for them to pay for those costs themselves. However you can't add any mark-up that way so it only works with people you're friendly with who accept you'll make up for it elsewhere on your invoice. |
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dylan-penguinmedia
Old Croc Joined: 14 April 2011 Location: Brighton Status: Offline Points: 4576 |
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If you work with people who aren’t VAT registered most of the time, the longer you can stay not VAT registered, the better.
If the majority of your transactions are B2B with VAT registered businesses, then get registered ASAP, even if you haven’t hit the threshold.
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Shelfstacker
Registered User Joined: 11 July 2008 Location: Midlands Status: Offline Points: 495 |
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I agree with the above, especially if you're planning to make a large capital expenditure outlay - say £20k + VAT on lights and £10k + VAT on a van. You can claim £6k straight back. This works better if most of your clients are VAT registered. However, if you've made your own PA and your dad is lending you his van, it's not really worth the hassle. By going VAT registered before you need to, you're essentially making yourself 20% more expensive to all of your non VAT registered existing clients. That or setting yourself up to do cash in hand tax evasion jobs. Not worth it.
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If you are at the circus and being attacked by clowns - go for the juggler
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Robbo
Old Croc Joined: 05 December 2005 Location: Shropshire Status: Offline Points: 4221 |
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In the seventies, I set up two separate hire companies---One that was VAT registered in my name and one that was not VAT registered in my wifes name.
This worked very well for obvious reasons and it was very easy to juggle work and purchases of hire stock to suit. Nowadays with VAT rate being a lot higher it would be even more beneficial but I do not think that Mr VAT man would be very happy. |
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rosssss224
Registered User Joined: 25 July 2012 Status: Offline Points: 447 |
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This basically answers it all for me as a non vat registered entity looking to be paid by a vat registered entity (festival). Thanks a lot. Will work on line totals and leave vat out of the duscussion.
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