Reclaiming VAT - advice please

[Johny Walker]

Yes you do!!!

 

I have "reclaimed" many thousands of pound when buying large plant.

 

but more often than not your just reducing your vat bill not actuly getting any bk,

[donnk]

just to add, to help with budgeting you can opt to do VAT monthly to stop a big bill building up. This is normal for us in house building as they allways owe us so we all do monthly.

[Justme]

but more often than not your just reducing your vat bill not actuly getting any bk,

 

If your just doing firewood and your markup is less than a factor of X4 then all Vat returns will be a reclaim.

[better dayz]

If your just doing firewood and your markup is less than a factor of X4 then all Vat returns will be a reclaim.

 

Utter bullocks

[skyhuck]

Utter bullocks

 

Rubbish!!

 

Are you VAT registered? I hope not

 

If I buy in timber, I pay 20% VAT, I can claim back 100% of that vat from HMRC. Now if I have sales in that quarter I will owe VAT on those sales, but the VAT on end user sales of wood fuel is 5%.

 

So unless the value of the sales is 4X greater than the cost of the purchased timber in the quarter I will be receiving money from HMRC, rather than paying them.

[better dayz]

Rubbish!!

 

Are you VAT registered? I hope not

 

If I buy in timber, I pay 20% VAT, I can claim back 100% of that vat from HMRC. Now if I have sales in that quarter I will owe VAT on those sales, but the VAT on end user sales of wood fuel is 5%.

 

So unless the value of the sales is 4X greater than the cost of the purchased timber in the quarter I will be receiving money from HMRC, rather than paying them.

 

 

If you sell more than you buy in a quarter you will not be receiving money from HMRC

[Justme]

 

If you sell more than you buy in a quarter you will not be receiving money from HMRC

 

But overall you will still be making a reclaim.

 

All your purchases are at 20% & all your sales are at 5%.

 

You would have to sell 4 times more than you bought.

 

So in winter yes you might make a payment to them in your peak selling period. You will have already claimed all the input costs back prior to that on a previous return.

 

You would have to be selling at a factor of over 4 to on balance be paying more vat to them that you claim back.

[better dayz]

But overall you will still be making a reclaim.

 

All your purchases are at 20% & all your sales are at 5%.

 

You would have to sell 4 times more than you bought.

 

So in winter yes you might make a payment to them in your peak selling period. You will have already claimed all the input costs back prior to that on a previous return.

 

You would have to be selling at a factor of over 4 to on balance be paying more vat to them that you claim back.

 

Your previous comment was all Vat returns will be a reclaim

 

Hence my comment

[County 764]

Best thing is to look at the vat notice for solid fuels, Just google it.

 

As trade sales go if you sell to a garage forecourt and they sell it on then you charge them £20%vat.

 

But if you sell to a hotel or business that's not re selling it then its 5%vat.

 

I think there might be volume limits per year but best not to think about that

[aspenarb]

I cant see how you lot are arriving at these figures. Assuming buying in timber with 20% vat attached and selling with @5% it would depend on the mark up and running expenses as to what was claimed back. If you charged 3x the purchased price for the end product with no overheads there would be nill to reclaim.

 

10 ton of timber bought in @ £50 a ton will have £100 worth of vat attached to it

 

If that timber made 30 loads @ £65 + 5% vat delivered its virtually a nil balance on the timber side of things with the exception of reclaimable/unreclaimable ( dependant on VAT scheme your in ) costs.

 

Bob

Edited March 26, 2017 by aspenarb
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