How did becoming VAT registered change your business?

[tim361]

If your trying to work out the value of something that has VAT included in the price divide it by 6 will give you the VAT amount, times by 5 will give you the price ex vat. 
 

120 / 6 = 20 the VAT

20 x 5 = 100 the amount before VAT

[Dan Maynard]

1 hour ago, Will C said:

basic price

vat added

total price

This is the key, you claim back what is shown as vat on the invoices. You add 20% to your invoices, and what you hand over is one minus the other like you said.

 

VAT can be complicated, not everything is 20% rate eg firewood at 5% or some foods are 0% - but thats not your problem as it will say the amount of vat on your invoice. All you need to do is collect a vat invoice (or receipt) for everything you spend and add up the figures given to get your claim.

[Joe Newton]

Don't forget that you might've bought a new truck with vat added, chainsaws etc. Anything that's not classed as consumables can be backdated and claimed for retrospectively as Capital Expense. Goes back a few years if i recall correctly.

[Joe Newton]

I'd get £1500 just for my little van if i did it. 

[Joe Newton]

34 minutes ago, tim361 said:

If your trying to work out the value of something that has VAT included in the price divide it by 6 will give you the VAT amount, times by 5 will give you the price ex vat. 
 

120 / 6 = 20 the VAT

20 x 5 = 100 the amount before VAT

Yes. That's how maths works. You can't just take 20% from the sum total.

 

 

[Donnie]

8 minutes ago, Joe Newton said:

I'd get £1500 just for my little van if i did it. 

Aye I'll be about 2K for all my saws more than likely!