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!

[Donnie]

Charged VAT for the first time this month. Will have earned me like an extra 500 on the 10 percent scheme. Gonna just forget about it all and put it into another account. 
 

My accountant seems to think I have to charge VAT since fully registering on the 10th of July. 
 

I didn’t charge VAT until I got a number, so I think I’ve got 2.5K of invoices without VAT on them. 
 

 

Is there a way to tell the VAT man I have been charging VAT as of the 1st of August say? 
 

 

[Donnie]

Thanks again for all the replies btw. Will have helped my business massively. 
 

Will get 3.5K back off my pick up also!

[GarethM]

Think your accountant is correct, they say from the point of application.

 

Not done it yet but was told to either bite the bullet for those invoices as you can't really ask for more, or tell them at the time include the vat and reissue the invoice when the number came.

 

Best asking the accountant as you can't ask for more after being paid.

[Donnie]

3 hours ago, GarethM said:

Think your accountant is correct, they say from the point of application.

 

Not done it yet but was told to either bite the bullet for those invoices as you can't really ask for more, or tell them at the time include the vat and reissue the invoice when the number came.

 

Best asking the accountant as you can't ask for more after being paid.

Aye. It was only 2 weeks maybe 3 weeks wages so around about 2.5-3K before VAT.

 

Seems kind of pointless that they say you need to charge it but don’t have a VAT number