Setting up a sole trader bussiness, reclaiming VAT

fishybusiness

I think you're about 20 years too late with this business "idea". Selling your own pre-built computers to friends, family and small businesses is a recipe for disaster. I did it about 15 years ago and even then i was too late to the game (probably by about 10 years)

Entirely agree - computers in general have become throw away items. The real profit used to be in the maintenance, not the initial sale.

When ADSL broadband came along, so did viruses and spyware, so many people just not used to faster speeds and the rapidly expanding web. There was plenty of money to be made in repairs.

Computers were still a relatively expensive commodity, and so repairs were worthwhile. Now in general a unit will be replaced once it becomes unreliable, negating the requirement for computer tech's to repair them.

Look at what happened to PC World is you want evidence of market trends.

motorguy

fishybusiness wrote: »

Entirely agree - computers in general have become throw away items. The real profit used to be in the maintenance, not the initial sale.

When ADSL broadband came along, so did viruses and spyware, so many people just not used to faster speeds and the rapidly expanding web. There was plenty of money to be made in repairs.

Computers were still a relatively expensive commodity, and so repairs were worthwhile. Now in general a unit will be replaced once it becomes unreliable, negating the requirement for computer tech's to repair them.

Look at what happened to PC World is you want evidence of market trends.

Totally agree.

Plus if the computer is running, theres no need for upgrades, etc. I've a laptop here thats 7+ years old and running away merrily. Same with desktops - an i3, 4GB RAM and Windows 10 and it'll quite happily run for years. And even if a business is buying laptops or PCs they usually budget £300-£500 so you've scope for maybe £50 profit which is peanuts for the amount of wallying about you will do (AND be their 24x7 support for a year in that price)

I hated supporting small businesses. They were adverse to paying for maintenance contracts, so you could only ever bill them for a call out and hourly rates. All very well but they would leave it last minute then make it YOUR problem to fix urgently.

martindow

Wholesalers want to assure themselves that they are supplying traders rather than individuals. A VAT number shows this but if you can't supply this most of them are happy with evidence of a business bank account or names of other companies who already supply you for instance. Strangely many wholesalers put great store by letter headings which anyone can knock up in five minutes on a computer.

bris

It's impossible, I looked into buying parts to build custom pc's about 6-7 years ago and found you cant actually buy the components wholesale unless you have tens of thousands of pounds to buy the parts at enough discount to be cheaper than the huge retailers.


Your understanding of VAT is also seriously flawed, you can never make a profit from VAT, at least not the way your thinking.

fishybusiness

you cant actually buy the components wholesale unless you have tens of thousands of pounds to buy the parts at enough discount to be cheaper than the huge retailers.

If you did, you would also need an outlet to shift them quickly as component value seems to drop through the floor constantly as new parts come along with higher spec.

Uxb

spadoosh wrote: »

In fact i dont think ive ever come across a company that wouldnt sell something to me because they wanted a VAT number. They want the money, they never ever care about the VAT number.

Sadly I have
I've on many occassion come up agaist a total block when trying to buy something - OK this is not mainstream consumer stuff.
We do not sell to end users - only to installers/retailers/professionals type of reply.
no VAT number - no dealing with you

Frankly I'd not let any of their so called professional installers anywhere near me!

Mistral001

SamPirul1985 wrote: »

I've looked at five wholesalers/trade account websites and they all ask for it, some ask for turnover, details of my business, no of employees. I'm not even quite sure why these specifically matter to them and why they specifically ask.

I haven't asked them, but all their application forms seem to want it, so look, I will go ask, if they don't then great.

They do this so that they know that you are a business and not some amateur who wants computer parts at discounted prices for their own personal use. It also means that they have an address that has been verified by an authority.

If you are a sole trader with say a large shop or small factory with several employees and a sizeable turnover, they would probably talk to you and accept business and bank references so as to gain a good customer even though you were not Ltd .

Suarez

NineDeuce wrote: »

How can you buy without paying VAT?

Become a Formula One driver :beer: