Quote:
Originally Posted by landmannnn
Yep, the flat rate scheme where you can't reclaim vat on purchases is the one you are thinking of.
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Aaah , yes that makes sense because at the time my main expenditures as a cherished number seller were MOT fees , Govt Transfer fees and car taxation fees ....all VAT exempt from memory , so nothing to claim back ...I am guessing my accountant took the view the VAT I paid on a bit of fuel and some sundry items was negligible and a 5% increase would keep me relatively competitive .....
In my opinion , if thats the case , Chris would benefit from full VAT registration , as his biggest expense will be fibreglass materials which are very expensive , therefore reclaiming some of that VAT against sales VAT charged out can only be a positive thing for him and go someway towards his increased Accountants bills , time spent processing the paperwork etc....
Just my opinion ..... no one wants to see a price increase under any circumstances and 20% is an 'ouch' but it's the downside of a kit that has proved to be very popular and a great success ...... and if these cars are going to regularly start to sell for the figures being bandied about in recent weeks ...everyone is still doing ok .....not many '' hobby build'' cars will even return expenditure ( time and money spent ) , so to return a healthy profit in this market place is quite comforting ....
( I have very quickly done some sums factoring in an average purchase price for a Z3 , KALI KIT INCL. VAT , a fitting fee by myself , a proper paintjob by Jeff H , wire wheels , a healthy sundry and unexpected setback allowance etc. and I can't get over £16-17,000 tops , thats not a ''from'' price , thats worst case scenario ...I don't know what the build agents charge , so may be a bit different ...but that's my guesstimate ... so , £17,000 approx. down , two months later sale of £20-22,000 approx. someone else does all the work , investor just picks the colour etc... and you get a return of about 15-25% minimum on your money after all the fun ...better than any bank ... )