advice on vat
- Thread starter frenchy17
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bodplasterer
Active Member
We were vat reg up till last year it was a nightmare takes a lot of your pot best thing to do is spend to ballance the whole thing.
you need to be more on the ball then that!
been on the ball for the last few years.lost my balance this year.havnt got much of a clue but dont want another big bill like the one for this year.lots of invoiced labour only.need some advice so i can make the best of the situation.already being investigated for 2009/2010.treat ya like a flippin criminal.robbing gets.lol
bodplasterer
Active Member
Just make sure you have all your receipts.
if you are under investigation then they in some thing in your accounts or lifestyle that does not add up. there are sums for every trade, as to there earnings, if you go above or below that figure by quite a lot that will also activate an investigation.
as you may guess in the past i have been under investigation.
as you may guess in the past i have been under investigation.
that is true but its common knowledge that they are concentrating on sole traders and small businesses in our area.my plastering mate is also going through it.ive got answers to the questions and its not really a big deal.im quite an honest tax payer.i had a subby in the other day to try out.he has a sign written van,a website.a newbuild house and a car.lives on his own but hasnt even registered the business and gets paid sausage and mash every job.wtf.
nickelarse
Private Member
how far back can they investigate?
they can investigate up to 8 years back.
vats a dodle these days you can just do it every quarter on line.
be careful what you add vat to on certain jobs ie schools,goverment buildings and new build are different tiers of vat, to be fair your accountant should be telling you all this.
just depends what type of work you are doing and how much materials you are supplying, i dont know how lads make a do if they are doing a lot of traveling and are not vat registered, the one benefit is your fuels 20% cheaper straight off.
it works well for us to be honest as I supply heaps of materials, that I claim back.
just keep your accounts in order, as if you cock up with income tax you get a slap on the wrist, fine, and investigated, but if you cock up with vat chances are your going to prison.
vats a dodle these days you can just do it every quarter on line.
be careful what you add vat to on certain jobs ie schools,goverment buildings and new build are different tiers of vat, to be fair your accountant should be telling you all this.
just depends what type of work you are doing and how much materials you are supplying, i dont know how lads make a do if they are doing a lot of traveling and are not vat registered, the one benefit is your fuels 20% cheaper straight off.
it works well for us to be honest as I supply heaps of materials, that I claim back.
just keep your accounts in order, as if you cock up with income tax you get a slap on the wrist, fine, and investigated, but if you cock up with vat chances are your going to prison.
how do you manage to avoid it?????
Nick says, looking over his shoulder and boarding the plane! Stay away for five years and it gets written off mate!
make sure you keep your turnover below the threshold point of vat.
as we are not regestered for vat.
i placed an advert in the local paper "no mess no vat" the local builders federation filled the letters page the next week as to why the customer was better off paying the 20% vat.i did not understand their argument and i do not think anyone would want to pay an extra 20%
theclemo
Private Member
owls is right. keep your accounts in order. i didn't i got a 38000 euro fine a few years back.
i think these fines of this amount of money are ridiculous. i was talking to a plastering contractor a few days ago who is paying £4,000 a month in fines for late payment of tax. after a building contractor whent bust on him.
it is just not worth employing anyone.
yes but the time it will take you to work that out you could have earned that money anyway. then you waste an other day with the visit from the inspector to check your bookwork. i know that everytime we purchased a new vehicle and claimed the vat back would prompt the visit. it is ok as long as you are writing out the cheques but as soon as you make a claim they do not like it. years ago it was a good thing spend a day at home and earn a decent cheque, but times have changed deregister at the first opportunity
nickelarse
Private Member
as far as i am aware you get a final inspection if u de register??
time it will take to work what out?
ive never had any problems with it, if you have a spread sheet set up on excel its a doddle it works out the vat for you.it takes my other half about an hour a month to do the paperwork for me, and we have a lot of in and out payments. you dont have a choice if your around 70 grand turnover and above anyhow,which isnt much these days to be fair, with everything added up.
i didnt get that either.
we did not get a visit when we deregistered it was just done through the post.
but we did have several visits when we where registered usually costing us money.
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PLASTAMASTA
Member
Make sure you pay your VAT in time, if possible put money to one side from each payment you recieve to cover it. Ive been late on a few occasions when waiting for money to come in and these guys dont like to wait, if you are late they issue you a surcharge notice for 12 months think it starts at 5% if your late again within the surcharge period (12months) it goes up to 10%, late again goes to 15% think thats as high as it goes and even if its only one day late you still get charged, faster payment by BACS does not work for HMRC it still takes 4-5 days to clear, phone to tell them it will be late you still get charged.BE CAREFULL
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