VAT reg

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Jgreenplastering said:
Vince what he's saying is if you buy a 10k van and your vat registered you can get 2k back of the price from being vat registered so in those respects it's good.
I've got a transit custom.
Almost 25k once paid but now I'm vat registered 5k I can claim back so in theory I'm paying less than what someone who isn't vat registered.
So there's pros and cons to it all.
Just because I now have to charge vat doesn't mean I'll be more expensive than others. Some yea but people who price high I may be the same still.
All I have to do is say to clients who ask yea I am vat registered but I'm still competitive and then they can judge for themselves if I'm to high or not.
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Yep..thats wat I was saying in u dnt get vat bk if not registered
 
theplasterman said:
I know j ..you'll do really well , out of all the people on here I sure you will make this a success tbf you already have just aim really high past that threshold so it's worth it.
In no way was I knocking you just saying how my mate found it, he aimed high to make it work.
Blooming tax/government don't imo make it easier for people to make a business more successful ..someone earning say £70 000 is paying same tax band as just under £1000000
(i think)
And that's the stupid way of the world.
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I didn't take it as a knock mate was trying to explain.
Hard judging on these bloody things what people mean by what they write!!!
 
Jgreenplastering said:
Yea she did say that in all, quite a few things I've bought that's cost a bit I can.

I need to check when I went over the threshold as I know they can make me
Pay vat from then so it may cancel out any payment I'm due back with the first one[emoji43][emoji43][emoji43]
My accountant does all my returns but I do it yearly not monthly so need to keep track over actual turnover from now!
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when i was registered vat the rules were if you had reached the amount needed to register and you told the vat office your account started that day. if you went over the required amount and did not register they will back date .
i had a run in with them when they sent me a back dated estimated bill for £4k, it went to court, the judge said it was a very unusual case but he gave the decision to the vat office. i told him that i wanted to appeal against his decision. he answered, you can not have an appeal hearing.
 
malc said:
when i was registered vat the rules were if you had reached the amount needed to register and you told the vat office your account started that day. if you went over the required amount and did not register they will back date .
i had a run in with them when they sent me a back dated estimated bill for £4k, it went to court, the judge said it was a very unusual case but he gave the decision to the vat office. i told him that i wanted to appeal against his decision. he answered, you can not have an appeal hearing.
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That's right they back date it from the moment you cross the threshold, alot don't realise the threshold amount is the sum of a rolling 12 month period, your tab doesn't start again in April so to speak.

I remember when I went vat we had to back date approx 3 months, I stood to owe 9.5k from the off, I was advised to go back and re invoice the builders for the vat, which they paid no problem, obviously I had to pay vat on domestics done in that period out my own pocket.

But you can also claim back the vat you have paid on big purchases from the last 3 years, which meant after all tallied up I went into it with a cheque from the vat man for £8k. Not bad at all.
 
Wezly said:
That's right they back date it from the moment you cross the threshold, alot don't realise the threshold amount is the sum of a rolling 12 month period, your tab doesn't start again in April so to speak.

I remember when I went vat we had to back date approx 3 months, I stood to owe 9.5k from the off, I was advised to go back and re invoice the builders for the vat, which they paid no problem, obviously I had to pay vat on domestics done in that period out my own pocket.

But you can also claim back the vat you have paid on big purchases from the last 3 years, which meant after all tallied up I went into it with a cheque from the vat man for £8k. Not bad at all.
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I need to check my accounts then!
As I've initiated the reg could and will they ask to look at my accounts to see when/if i went over before reg??

Squeaky bum time a bit!
 
Wezly said:
That's right they back date it from the moment you cross the threshold, alot don't realise the threshold amount is the sum of a rolling 12 month period, your tab doesn't start again in April so to speak.

I remember when I went vat we had to back date approx 3 months, I stood to owe 9.5k from the off, I was advised to go back and re invoice the builders for the vat, which they paid no problem, obviously I had to pay vat on domestics done in that period out my own pocket.

But you can also claim back the vat you have paid on big purchases from the last 3 years, which meant after all tallied up I went into it with a cheque from the vat man for £8k. Not bad at all.
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Good advice there
 
Jgreenplastering said:
I need to check my accounts then!
As I've initiated the reg could and will they ask to look at my accounts to see when/if i went over before reg??

Squeaky bum time a bit!
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They won't ask to look at them now, it will be down to you to go back through and make sure everything is in order, when you get a vat inspection they will be sure to check.
 
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Wat happens say you got lads working for you and all labour wages are taxed at 20% c.i.s tax by the builder but all money is paid thru your business does there wages count towards ur earnings threshold? Or is it the amount ur making after there wages have been taken off if that makes sense to any of u vat registered guys??
 
Kitchy said:
Wat happens say you got lads working for you and all labour wages are taxed at 20% c.i.s tax by the builder but all money is paid thru your business does there wages count towards ur earnings threshold? Or is it the amount ur making after there wages have been taken off if that makes sense to any of u vat registered guys??
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The threshold is on your turnover.
 
Wezly said:
The threshold is on your turnover.
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So with there wages going thru our company wezly that's in our turnover then isn't it as all money goes thru our business..dont know much about vat rules as its never crossed our minds as we hardly spend on materials but looking at books we are over threshold and then some..never thought about vat til this post popped up
 
Where did most of you guys learn about all this or is it just experience and a good accountant guiding you? I'm thinking of incorporating but don't know much about the ins and out..... Please be kind
 
Builderboi said:
Where did most of you guys learn about all this or is it just experience and a good accountant guiding you? I'm thinking of incorporating but don't know much about the ins and out..... Please be kind
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I know zilch about vat but know stuff about ltd if that's wat ur after? All I know about vat is threshold is £75000 a year but not sure the ins and outs of it
 
Kitchy said:
I know zilch about vat but know stuff about ltd if that's wat ur after? All I know about vat is threshold is £75000 a year but not sure the ins and outs of it
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Haha, my wife just piped up, she says you were right the first time you know zilch because the threshold is at 82k. Women.
 
Wezly said:
Haha, my wife just piped up, she says you were right the first time you know zilch because the threshold is at 82k. Women.
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Haha thought it was £75000..only been ltd 2 years..wat happens If you go over and u havnt applied for vat?
 
Dependant how you want to grow your business
Some companies will only deal with vat registered
Can make you look a bigger company than you actually are !
Getting chance to quote work for bigger projects
 
theplasterman said:
Accountants will always advise what will make them more money out of clients,

There worse than tradesmen..

But yeah
Suppose you might be right
Sod knows how I'd know if they were good
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nah n accountant needs you to be successful as for them its a long term business :D
 
Danny said:
nah n accountant needs you to be successful as for them its a long term business :D
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Thing is though most of us have not got a clue about what they are saying or advising..so we just trust they are saying the right thing.
 
Not meaning to sound smart arsey but it really isn't complicated. Have a little read online. Speak to your accountant. From.my personal experience being vat registered has only been a good thing. I actually went voluntarily vat registered about 10yrs back. It's really not something to worry about or over complicate. Just keep your paperwork in order
 
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