[lee_gundry]

i am on the border line for going vat registerd,do i

1. take a few weeks of & keep under the threshold

2. take the plunge

my year end ends in september 04.i mainly do domestic 80% &  commercial 20%


i have work comming out of my ears,i have got 4 big new contracts in the past month which is commercial
work



any advice would be very helpful

Lee G    

(thats £50.00 plus vat please)

[Zach]

Lee,

I think that the regulations speak for themselves anyway. If you are going to go over the threshhold in the next 30 days, you are practically compelled to register.

I have copied a bit from the  web for you.

If the value of your taxable supplies in the past 12 months or less has exceeded the current VAT registration threshold of £58,000, or the value of your taxable supplies in the next 30 days alone is expected to exceed this threshold, you should read the publication below and complete the application form.

More details here. http://www.hmce.gov.uk/business/vat/vatregist.htm

[adl]

Hi Lee,

we went Vat Reg in feb of this year, hasnt affected my customers at all. Hoewever we have just had a rebate for our first quarter due to the amount of stock and machinery e have bought, Just bought a LWB Sprinter thanks to Mr TAX Man.

regards Dave ADL

[paulchambers]

If i reached vat borderline i would take a months cruise

paul

[brucie]

split your company into 2, 1 for domestic 1 for commercial

[George-Reid]

Lee.
its no big deal just do it get some software sage etc will do all the calcs for you. its not nearly as big a deal as is made out. It can mean the diffrence between a job and a business.

Brucie.
Sorry mate you cant do that.

Cheers

George

[Londoner]

Thats actually illegal if your reason for doing it is to avoid tax. You could get that month's holiday for free at her Majesty's expense.
Trying to duck and dive will always be a headache and will hold you back.
Be grateful you business is doing so well and think of it as going up a step.

[Ken Wainwright]

Customs and Excises powers are draconian. Splitting into 2 businesses is not allowed for VAT purposes as they take into account combined turnover of all your businesses. When I registered in the late 80's I was very close just as is Lee. I supplied my quarterly figures as they requested. They sent them back and asked for the months to fit in with their system (I was Feb, March, April, they wanted Jan, Feb, March type of change). By altering the figures in this way, I was now £200 over the limit instead of £200 under on the previous 12 months. I had to pay back tax.

Don't be frightened of V.A.T. Lee. It's very easy to learn and  administer. It will barely make any difference to your residential customers (usually our biggest fear). The only significant downside to V.A.T registration is cashflow. The bank balance gradually increases during the quarter then WHAM! you're suddenly in overdraught

You won't sleep until you are registered Lee.

Safe and happy cleaning+V.A.T.
Ken

[Fox]

I registared for VAT even before I had a turnover!  (mind you I only work with commercial customers) as I knew it wouldn't be long before I hit the threshold.  

Ken says there is a downside with cashflow and I know his point but open a deposit account and everytime you get paid put the VAT due in this account it will even accumalate interest!

Go for it - it's not hard to admister and you will be surprised at how easily your customers will adjust to this.

Fox

[lee_gundry]

thanks all  for the input.


Lee G

[SteveTruman]

Hi Lee,
I used to be registered but when threshold went up i deregistered. If you have your fingers in more than 1 pie and your name is on the company details , both ventures will have to be vat registered to do it legally.Best thing to do is register for the vat and keep it all under 1 umbrella.. P.S. at the end of this tax year which for me is 4th. April next yr. i will have to register again due to the increase in turnover...

Steve

[Mark Betts]

With all these questions regarding Tax and Vat.

Why dont you just phone up your local Tax and Vat office and ask them? Or even just pop in to see them?

I have a "friend" who works at the local tax office and she hasnt got 2 heads    and they are quite approachable people . Unless you have something to hide that is  

Isnt it better to get the info from the horses mouth on such a critical subject rather than rely on hearsay from a Carpet Cleaners forum??

I visit my local tax office at least 2 or 3 times a year with various queries and have always found them helpful.


Mark

[Kinver_Clean]

I run my accounts under Sage. I recently upgrdaed to their latest system and for parts it is easier than the previous one, but there are glitches in the system. I have spoken to them and emailed but their response is vitually zero. There are easier systems on the market. If you have an accountant- which you ought to have if you are registered- see which system he uses.

Trevor

[nick.solution]

Hi Guys

you can no longer split your business between private and and commercial the new rules stop this, if the main business operation is carpet cleaning then you are not allowed to differentiate. Most commercial customers prefer Vat registered companies anyway, the majority of people who went vat registered over the years said it didnt have a major effect on their domestic business.

Best regards Nick