Posted by jonesy5 (jonesy5), 11 December 2003
Im starting reach and wash system and already have a couple of lads working for me. Im just wondering if anyone can help or give advice on vat. I dont know much about it so anything would be helpful. I am thinking of registering so what are the pros and cons?
Posted by paul (paul), 11 December 2003
THE PROS FOR VAT ARE YOU CAN CLAIM BACK YOUR VAT ON FUEL ,EQUIPMENT ETC BUT YOUVE GOT TO CHARGE IT ON EVERY JOB YOU DO AND IF YOU HAVE DOMESTIC CUSTOMERS THEY DONT LIKE IT FOR FURTHER INFO CHECK OUT THE CUSTOMS AND EXCISE WEB SITE AND LOOK UNDER VAT[flash=200,200][/flash]Posted by pdhanson (Silly Philly), 11 December 2003
Paul has summed it up pretty nicely there, basically if you register, you must charge VAT on every job. That is 17.5%(So for a job costing £100, you charge £117.50)
But you don't get to keep that extra, you keep account of it and every three months you send it to HM Customs and Excise.
If you are charged VAT, for example on petrol, or equipment, you can deduct that amount from what you have to pay over.
If your work is all for VAT registered companies, they wont care less if you charge VAT, because they'll simply claim it back on their own VAT return. However, you must also charge it to domestic customers, which means their price goes up by 17.5% for nothing.
Once your turnover reaches £54,000 per year, you MUST register like it or not. There are severe penalties for not doing so.
Silly
Posted by jonesy5 (jonesy5), 11 December 2003
Thanks very much. dont like idea of paying it every 3 months
that means VAT man always on your case, so think i will wait a bit longer no where near the 54k mark yet!!! Does it cost to register ?This page is a thread posted to the cleanitup forum at www.cleanitup.co.uk and archived here for reference. To jump to the archive index please follow this link.