Crossing VAT threshold/ future quoted work

[dig-dug-dan]

20 minutes ago, jfc said:

I am in very similar position to the OP, but do have an accountant already and am planning my VAT reg.

 

Quickbooks saves me loads of time, especially sending out invoices and checking I've been paid and tracking expenses. For just under £15 a month it is well worth it for me.

 

Just my thoughts.

j. 

Can you delete invoices?

[Mark J]

14 hours ago, deezyboy said:

I will also be getting an accountant tomorrow, as well ?

Aye mate, get a good accountant. They're worth their weight in gold and understand the whole VAT process.
When I was sole trader I paid about a quid a day for one, now as Ltd company I pay about 5-600 a year.

There are significant benefits to going VAT registered. Not least that you can probably claim VAT back on things you've bought over the last three or so years before registering.

Using things like quickbooks (take photos of receipts and send invoices etc through it) is a good idea in conjunction with a good accountant. They can sort the wheat from the chaff.

I can recommend one if you like.

Edited December 4, 2020 by Mark J

[openspaceman]

2 hours ago, jfc said:

sending out invoices and checking I've been paid

This is something I slipped up on, I was fine invoicing work but once people started  paying by electronic bank transfer I failed to spot non payment and the longer you leave a debt the harder it gets to collect.

[dig-dug-dan]

1 hour ago, Mark J said:

Aye mate, get a good accountant. They're worth their weight in gold and understand the whole VAT process.
When I was sole trader I paid about a quid a day for one, now as Ltd company I pay about 5-600 a year.

There are significant benefits to going VAT registered. Not least that you can probably claim VAT back on things you've bought over the last three or so years before registering.

Using things like quickbooks (take photos of receipts and send invoices etc through it) is a good idea in conjunction with a good accountant. They can sort the wheat from the chaff.

I can recommend one if you like.

How much? For a Ltd company? And that includes your fling to companies house fees too?

[Mark J]

 

1 hour ago, dig-dug-dan said:

How much? For a Ltd company? And that includes your fling to companies house fees too?

Aye.

Filings to CH are only a few quid and covered in their fee, anyone who can use a web browser can file a return, if they have one. It depends on the scope of operations I suppose. I occasionally have people working with me on a sub contracting/consultancy basis. Last year I paid just shy of £600.00 in accountancy fees.  When I was just one man banding it, I paid £350 a year in accountancy fees.

The thing with quickbooks etc is they're very generic. They'll put purchases into categories like fuel/stationary/tools etc. What they don't do is understand how the breakdown of allowances pertains to your individual sector and personal situation - that bit makes all the difference and is usually worth more than the money you'll pay an accountant. Giving your accountant a quickbooks etc. file will make their lives easier as the 'bookkeeping' element of the job is already done.

 

Edited December 4, 2020 by Mark J

[Paddy1000111]

£600 sounds about right. That's what I pay, LTD, all my filing, self assessment, PAYE stuff, etc etc. I don't have to do anything but send in my receipts and bank statements

[lux]

You may not necessarily have to register immediately. You are allowed certain fluctuations in your accounts around vat registration. Your book keeper will be able to explain it to you You only need the accountant if you are ltd / vat registered etc.
Say the last 3 or so years have been u see the vat threshold and this year your only say 15 k over it you can have some wiggle room if you don’t want to register.
But if you think your business is now growing and you will continue to be over the threshold just get the accountant to register.
You can go back 4 years in your expenses claiming things for your vat registration.
First time I filed in the paperwork I got a £10k rebate so that was quite nice.
I use Xero for all my paperwork. And a very simple scanning app on my phone for all my receipts. Ping em off and legally you don’t even need to keep the paper copy like you used to. Although I still file them away. Scanning those in keeps the processing time down for the book keeper too so that reduces that bill.

[Steve Bullman]

My accountants fees are directly tied to how much of a pain in the arse I am. Last year it was £1200, the year before it was £600.

Not looking forward to this years bill!

[Conorjm10]

I had the same issue but only realised in October that I had passed the threshold in June. I had 2 months work pencilled in that I had quoted for (with no VAT added). I contacted the commercial clients and schools etc (only around 25% of the work that was booked in) and took the hit myself on the rest. I didn't feel comfortable ringing back clients that had accepted a quote and then adding the VAT to it due to my own fault. 

 

I had to backdate the VAT for the 4 previous months too which I had done the work but didn't charge VAT. Luckily I had purchased some new machinery so somehow I ended up getting refund but I did loose a couple of nights sleep before the accountant called with the good news.

 

Definitely get a good accountant! The bill you get from them will be a fraction of what they save you in tax/VAT.

Edited December 20, 2020 by Conorjm10