VAT Registered

[Retired Climber]

People complain about not wanting to be an unpaid tax collector, but what's not to like? The Vat man asks me to add 20% to my invoices and give it to him. He asks me to send it to him once a quarter, up to 4 months and a week after I've been given it. He doesn't care what I do with the money whilst I have it, as long as he gets it on time. I have 10s of thousands of pounds to play with however I like. On top of that, I can take off any VAT I've paid before I sent it. 

 

The only person who loses out with VAT is the poor sap right at the end of the line who's not registered, and can't claim it back. It's a tax for consumers and end users, not businesses. If you are a business and are not registered, you are a mug, and are playing at business, whilst paying tax as a consumer. 

[Mick Dempsey]

3 minutes ago, Retired Climber said:

People complain about not wanting to be an unpaid tax collector, but what's not to like? The Vat man asks me to add 20% to my invoices and give it to him. He asks me to send it to him once a quarter, up to 4 months and a week after I've been given it. He doesn't care what I do with the money whilst I have it, as long as he gets it on time. I have 10s of thousands of pounds to play with however I like. On top of that, I can take off any VAT I've paid before I sent it. 

 

The only person who loses out with VAT is the poor sap right at the end of the line who's not registered, and can't claim it back. It's a tax for consumers and end users, not businesses. If you are a business and are not registered, you are a mug, and are playing at business, whilst paying tax as a consumer. 

Never looked at it like that.

[Puffingbilly413]

9 hours ago, Steve Bullman said:

 Im not sure anyone’s a vat fan, but it’s there all the same. I’m a fan of being registered rather than not being!

 

Every one of those £100 petrol receipts you get when you fill up are just an expense receipt to the non registered. To me they are a £10 voucher, and that’s just the tip of the iceberg 

I had the VAT registration discussion with my accountant last year as I was thinking of registering voluntarily for the reasons many have said. He told me I was bonkers and only do it when you have to.

 

i guess even accountants have different thoughts on the subject.

[Steve Bullman]

7 minutes ago, Puffingbilly413 said:

I had the VAT registration discussion with my accountant last year as I was thinking of registering voluntarily for the reasons many have said. He told me I was bonkers and only do it when you have to.

 

i guess even accountants have different thoughts on the subject.

There’s accountants and there’s accountants. Some are just good at maths and filling out forms, whilst some know how to play the game. Which is yours?

[Retired Climber]

34 minutes ago, Puffingbilly413 said:

I had the VAT registration discussion with my accountant last year as I was thinking of registering voluntarily for the reasons many have said. He told me I was bonkers and only do it when you have to.

 

i guess even accountants have different thoughts on the subject.

It's not just an accounting decision, it's a marketing one. 

 

Don't take business advice from an accountant. 

 

Edit. I should add, obviously anyone on here with a business large enough to use management accountants can gain value from their advice. I refer to the type of accountant who does your accounts / tax return. 

Edited September 18, 2021 by Retired Climber

[Puffingbilly413]

27 minutes ago, Steve Bullman said:

There’s accountants and there’s accountants. Some are just good at maths and filling out forms, whilst some know how to play the game. Which is yours?

Undecided on that one Steve!

[Retired Climber]

2 minutes ago, Puffingbilly413 said:

Undecided on that one Steve!

Logically, is a bloke who sits behind a desk all day for 40 grand a year the right bloke to ask how to make money? No. 

[Puffingbilly413]

30 minutes ago, Retired Climber said:

It's not just an accounting decision, it's a marketing one. 

 

Don't take business advice from an accountant. 

True. I’m still undecided on it. I’m a one-man owner operator and want to keep things small. It’s 50-50 for me really on whether it’s worth it

[AHPP]

People complain about not wanting to be an unpaid tax collector, but what's not to like? The Vat man asks me to add 20% to my invoices and give it to him. He asks me to send it to him once a quarter, up to 4 months and a week after I've been given it. He doesn't care what I do with the money whilst I have it, as long as he gets it on time. I have 10s of thousands of pounds to play with however I like. On top of that, I can take off any VAT I've paid before I sent it. 
 
The only person who loses out with VAT is the poor sap right at the end of the line who's not registered, and can't claim it back. It's a tax for consumers and end users, not businesses. If you are a business and are not registered, you are a mug, and are playing at business, whilst paying tax as a consumer. 

Short term pragmatism. Longer term, you’re arming an enemy. Most importantly, some people choose to act morally rather than just on the numbers. I imagine all you’re hearing is the siren song of the pauper and loser but there are plenty of people who really are happier having less money than they could have.

[Puffingbilly413]

2 minutes ago, Retired Climber said:

Logically, is a bloke who sits behind a desk all day for 40 grand a year the right bloke to ask how to make money? No. 

Perhaps. I’d be disappointed if this accountant was on less  than 90k a year having seen my accountancy bills…