Annual Health Check!

[Tanskavan]

It's time for our Bessacarr to have the Annual Service, MOT etc. I also have a small amount of Warranty work required. I live in South Yorkshire, can anyone recommnend a 1 stop shop for the work. I am looking for workshops with excellent Customer service.

 

Need to make a booking before end of next month.

 

Cheers

 

Tony

[Clive]

Their is some bloke in Telford, can't remember his name. Aparently he does this sort of thing for a growing band of people who don,t want to do it themselves. I understand that he is so popular he has been made to register for VAT. That,s a bit of a sod as one way or another its gonna cost another 17.5% whatever way you slice it.

 

 

 

 

 

 

[Clive]

Their is some bloke in Telford, can't remember his name. Aparently he does this sort of thing for a growing band of people who don,t want to do it themselves. I understand that he is so popular he has been made to register for VAT. That,s a bit of a sod as one way or another its gonna cost another 17.5% whatever way you slice it.

 

 

 

 

 

 

[RupertGS]

Clive - 2007-09-08 11:51 PM

 

Their is some bloke in Telford, can't remember his name. Aparently he does this sort of thing for a growing band of people who don,t want to do it themselves. I understand that he is so popular he has been made to register for VAT. That,s a bit of a sod as one way or another its gonna cost another 17.5% whatever way you slice it.

 

 

Not quite right I'm afraid. If a business isn't registered for VAT it cannot claim back its input tax. Let's assume a spare part costs £100. The VAT would be £17.50 making a total of £117.50. So your friend, whoever he is, before he became VAT registered, paid the full £117.50. If he sells the part at a mark-up of 25% he charges you £146.87. His profit is £29.37

 

If he's VAT registered and wishes to make the same markup of 25% he has only paid £100 as he claims back the £17.50 VAT, so he sells the product at £125 plus VAT of £21.87 a total of £146.87!

 

However, his profit is reduced from £29.37 to £25.00 but as his capital outlay is only £100 and not £117.50 then that's fair.

 

So as you can see, on parts or other products there is no difference.

 

However, there is a saving to be made on his labour charge as he must, if registered, charge 17.5% VAT. However if he is unregistered he should be charging a higher labour charge to compensate for the fact that he cannot reclaim the VAT on all of his other expenses such as telephone charges, materials, car running costs etc. etc.

 

So in a nutshell, the fact that a non-registered trader can do business with you at a big savings is a myth!

 

I'm going to Birmingham next month to buy a new (first) motorhome and have been lurking in this forum for a week or so. Sorry that my first post is a bit technical but the point needed making!

 

 

 

 

[Clive]

You are correct, the VAT is on the added value. Added to this of course is the cost of the accounting plus all the hassle associated with it.

 

In the servicing business I guess that the Labour costs are a large proportion of the bill and are "added value".

 

 

 

 

 

[davenewellhome]

Hi Clive and others, I might just be that "bloke in Telford" and yes I am now VAT registered but I try to keep the prices sensible. The only problems for Tanskavan with me doing any of his work is I don't do MOTs or base vehicle servicing (although there is a large garage on the same estate as me who can (lol) ) and as a non NCC AWS member my hab inspection will not be accepted by most dealers for warranty purposes (even though I believe I do a much more thorough job). Also Tanskavan mentioned he needed some warranty work carrying out which means at the very least he'll have to go to a dealer of his brand of motorhome.

 

D.

[Clive]

Yup, thats the name I had in mind.