Reclaiming VAT - advice please

[skyhuck]

[Woodworks]

If I bought in timber at a cost of £1000+vat(at 20%), I can reclaim the £200 vat back at the end of the quarter.

 

If in the same quarter I sell £3000+vat (at 5%) of logs, I will have collected £150 of vat for HMRC, so they will owe me an additional £50 even before vat on overheads is taken into account.

 

It really is pretty simple

 

This

 

Wish I hadn't bothered with Vat registration

 

We get back around what we pay but have the hassle and the extra accountancy costs.

[Brett]

Yes you do!!!

 

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

 

yeah, ok, but how much have you claimed back dealing in firewood?

[Stephen Blair]

If you pay vat, you get it back.

If you charge vat you have to give it back.

It's that simple.

[skyhuck]

Say £35000 worth of sales in a quarter Oct Nov Dec

 

Buy in circa £6000 worth of diesel for the delivery vehicle

 

Your not gonna get a repayment from HMRC

 

Pretty simples really

 

Ok, if you have sold £35K worth of logs do you not think you would be looking to restock?

 

You would only need to buy £3K of round wood to be back at the point where HMRC are paying you

[skyhuck]

yeah, ok, but how much have you claimed back dealing in firewood?

 

Read the thread

[better dayz]

If you pay vat, you get it back.

If you charge vat you have to give it back.

It's that simple.

 

If your vat registered

 

Op never did say

[kevinjohnsonmbe]

If you pay vat, you get it back.

If you charge vat you have to give it back.

It's that simple.

 

 

Quite, I don't exactly follow the logic of describing it as a "VAT bill". It's just passing on the money that has been accumulated on behalf of HMRC.

 

 

 

If your vat registered

 

 

 

Op never did say

 

 

Think it all got too complicated!

 

My money is on - non VAT reg'd and asked a question without fully acknowledging how excitable it would all get, now slightly embarrassed!!

 

Maybe wrong, wouldn't be uncommon 🤔

[skyhuck]

Its not a vat bill, we collect vat on behalf of HMRC, because we collect the tax for them, they allow us to claim back the vat on our purchases.

 

Anyone buying in round wood to process and retail should vat register, its a no brainer, your reclaiming at 20% and collecting at 5%.

 

HMRC have just changed the flat rate scheme as people are profiting, the flat rate scheme is very poor compared to 20% V 5% situation with domestic fuel.

[kevinjohnsonmbe]

Its not a vat bill, we collect vat on behalf of HMRC, because we collect the tax for them, they allow us to claim back the vat on our purchases.

 

 

I'm on the same page....!

 

I don't see it as a bill.....