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22 minutes ago, Peasgood said:

Accountant advises VAT is reclaimable but as it is a building only a certain amount can be offset against tax as an expense. 3% IIRC.  Pretty irrelevant in this case as I don't pay a right lot of tax. 

😂👍🏻 that’s my approach too 👍🏻😂

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23 hours ago, AHPP said:

What's 7k a quarter? Some threshold?

Can someone humour me please. I'm trying to learn things.

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22 minutes ago, AHPP said:

Can someone humour me please. I'm trying to learn things.

The guy said he is re claiming 7 k in the quarter.... So reclaiming back 7k of vat from purchases he has made over the quarter. He must have spent a good 30k plus vat to claim that back though

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8 minutes ago, swinny said:

The guy said he is re claiming 7 k in the quarter.... So reclaiming back 7k of vat from purchases he has made over the quarter. He must have spent a good 30k plus vat to claim that back though

No, he didn't say that.

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10 minutes ago, eggsarascal said:

No, he didn't say that.

 

I'm registered and most of my trade is commercial so makes no difference fortunately. My return is about to go in and they will be giving me £7k for the last quarter, I have been spending a lot!

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1 hour ago, AHPP said:

Can someone humour me please. I'm trying to learn things.

I didn’t quite grasp the original question Al. 
 

I wasn’t sure if there was an element of sarcasm or a gag that I didn’t ‘get.’

 

To get a £7k VAT rebate you have to have bought stuff that’s VAT rateable @20% which exceeds the amount of VAT you’ve charged on the goods you’ve supplied that are VAT rateable. 
 

Do work invoiced at £1000 + VAT (£200) invoice £1200 pass £200 to HMRC. 
 

Buy stuff invoiced at £2000 + VAT (£2400) 

 

End of ¼ you pay HMRC £200 but they ‘owe’ you £400

 

Rebate = £200

 

How you doing BTW?  Barter, exchange and swap is a much better system all round, no need to subsidise some shiny ass office barsteward taking a slice of your cake 👊🏻

 

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8 hours ago, AHPP said:

Can someone humour me please. I'm trying to learn things.

The 7k is what I said I am claiming back off the VAT man this quarter. It is the VAT I have paid out minus the VAT I have charged on goods sold. This last quarter I have been buying building materials on a couple of sheds I am building and I can claim the VAT back, This soon tots up to quite a sum. I have to charge VAT on goods I have sold and that gets taken off the VAT I am claiming back.

This quarter (my VAT return is every 3 months) the VAT I am claiming back exceeds the VAT I have collected through sales and I said I will be getting £7k back. That is where the figure comes from.

Normally you would expect to have charged more VAT on work or sales than VAT you are claiming back on purchases and you would be paying the excess to HMRC.

Hope that helps, ask away if it doesn't

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If you have any domestic customers you always loose with vat. No if no buts.  You are essentially an unpaid tax collector and you are more expensive than the unregistered competition (or you get to keep less overall for the same amount of work)
 

However, there are tangible yet hard to accurately quantify benefits. It allows you to grow your business faster, especially when combined with finance. More machinery (subsidised if you like by reclaiming the vat) makes you quicker on domestic jobs than the unregistered competition, therefore more profitable. And of course, you can take on work for commercial customers, farmers and the like, for whom vat is not an issue. You will also find that the higher quality domestic clients fully expect vat, and indeed may view those not registered as amateurs or cowboys. 
 

Like I said, the benefits are hard to put an exact figure on, and if you look at domestic jobs and the competition in terms of exact figures then you ‘always loose’. But I don’t regret going registered one bit. 

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4 hours ago, doobin said:

Like I said, the benefits are hard to put an exact figure on, and if you look at domestic jobs and the competition in terms of exact figures then you ‘always loose’.

Not really hard to put a figure on once you have  a quarter's receipts and invoices, whether you are registered or not.

 

No you don't always lose but on domestic jobs with low vatable inputs you likely will.

 

If you are VAT registered and never do work for Vat registered customers you always will lose out.

Edited by openspaceman
added final line for clarification

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9 hours ago, kevinjohnsonmbe said:

I didn’t quite grasp the original question Al. 
 

I wasn’t sure if there was an element of sarcasm or a gag that I didn’t ‘get.’

 

To get a £7k VAT rebate you have to have bought stuff that’s VAT rateable @20% which exceeds the amount of VAT you’ve charged on the goods you’ve supplied that are VAT rateable. 
 

Do work invoiced at £1000 + VAT (£200) invoice £1200 pass £200 to HMRC. 
 

Buy stuff invoiced at £2000 + VAT (£2400) 

 

End of ¼ you pay HMRC £200 but they ‘owe’ you £400

 

Rebate = £200

 

How you doing BTW?  Barter, exchange and swap is a much better system all round, no need to subsidise some shiny ass office barsteward taking a slice of your cake 👊🏻

 

 

2 hours ago, Peasgood said:

The 7k is what I said I am claiming back off the VAT man this quarter. It is the VAT I have paid out minus the VAT I have charged on goods sold. This last quarter I have been buying building materials on a couple of sheds I am building and I can claim the VAT back, This soon tots up to quite a sum. I have to charge VAT on goods I have sold and that gets taken off the VAT I am claiming back.

This quarter (my VAT return is every 3 months) the VAT I am claiming back exceeds the VAT I have collected through sales and I said I will be getting £7k back. That is where the figure comes from.

Normally you would expect to have charged more VAT on work or sales than VAT you are claiming back on purchases and you would be paying the excess to HMRC.

Hope that helps, ask away if it doesn't

Thanks. I get all that. I must have misread something because I thought there was more to it.

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