Reclaiming VAT - advice please

[skyhuck]

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

 

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

 

[TimberCutterDartmoor]

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

 

It's not quite a 15% gain though since circa 1 tonne hardwood roundwood at say £40+vat (ignore the haulage for now) might yield 1.5m3 loose logs at (here anyway) £76+vat @ 5% per m3...

 

So if my math is right for every £8 you claim back (from £48 inc per tonne) you pay the vat man £5.70.

 

Or is that a complete balls up?!

[skyhuck]

It's not quite a 15% gain though since circa 1 tonne hardwood roundwood at say £40+vat (ignore the haulage for now) might yield 1.5m3 loose logs at (here anyway) £76+vat @ 5% per m3...

 

So if my math is right for every £8 you claim back (from £48 inc per tonne) you pay the vat man £5.70.

 

Or is that a complete balls up?!

 

I'm sure your right, but your still on a winner.

 

The key thing IMO is that your average end user is not going to bother about 5%, so why would you not register?

 

And even if you had to swallow the 5% yourself, the claim back on plant and fuel etc, would be well worth registering

[TimberCutterDartmoor]

I'm sure your right, but your still on a winner.

 

The key thing IMO is that your average end user is not going to bother about 5%, so why would you not register?

 

And even if you had to swallow the 5% yourself, the claim back on plant and fuel etc, would be well worth registering

 

Absolutely.

[skyhuck]

I think the thing none vat registered people forget is that they are paying HMRC virtually every time they buy anything.

 

At least if your vat registered you get to claim some of it back:biggrin:

[TimberCutterDartmoor]

I think the thing none vat registered people forget is that they are paying HMRC virtually every time they buy anything.

 

At least if your vat registered you get to claim some of it back:biggrin:

 

Couldn't agree more. Best thing I ever did.

 

Small firms fear it will lose them higher margin, fast cashflow, domestic work tho.

[better dayz]

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

 

I was thinking about jacking the logs in and becoming a financial advisor

 

Will I pm you my number

[R5log]

20% round brought in

5%in sales to in user

= zero near enough

No brainier

Claim 20% on machines etc

[R5log]

20% round brought in

5%in sales to in user

= zero near enough

No brainier

Claim 20% on machines etc

 

 

Calculations sent from my hot tub !

[skyhuck]

I was thinking about jacking the logs in and becoming a financial advisor

 

Will I pm you my number

 

 

You do that little buddy you're doing real well, keep it up sport