How did becoming VAT registered change your business?

[tim361]

I’ve just finished my first year since being VAT registered. Spent 3 years just skating under it and got fed up with constantly having to check my turnover to see where I was so took the leap. First VAT return got me a rebate of £17k which they didn’t fight to pay back just asked for lots of documentation to show the purchases/finance on the big items. Yes I’ve lost a few of the regular people I use to work for who decided to get other people who aren’t VAT registered. The vast majority of people don’t seem to care, they have to pay it with other trades so makes no difference to them. I’ve found you get more of the work you want to be doing and less of the people who want it doing as cheap as possible. Normally just mentioning in VAT registered is enough to stop me wasting my time going to look at a job I wouldn’t get anyway. 

[Dan Maynard]

Seems like I'd be able to reclaim all the VAT I've spent on Landrover repairs over the last 4 years - definitely tempting to register.

[AHPP]

3 minutes ago, Dan Maynard said:

Seems like I'd be able to reclaim all the VAT I've spent on Landrover repairs over the last 4 years - definitely tempting to register.

 

I've always wanted to register, get the 4 years worth back (mainly from the abominable amount I've spent on fuel) and deregister one second later. Can't be that easy though.

[Steve Bullman]

14 minutes ago, Dan Maynard said:

Seems like I'd be able to reclaim all the VAT I've spent on Landrover repairs over the last 4 years - definitely tempting to register.

Nope I don’t believe so. You can only claim back long term for capital expenditure, so for example if you purchased a new truck. I don’t think spares and repairs count. For that it’s probably 6 months back. Might be wrong though 

[Will C]

7 minutes ago, Steve Bullman said:

Nope I don’t believe so. You can only claim back long term for capital expenditure, so for example if you purchased a new truck. I don’t think spares and repairs count. For that it’s probably 6 months back. Might be wrong though 

Sounds right from memory. I seem to remember You can only claim for capital items you still have. Landrover parts from a year ago wouldn’t count they would of fallen off again months ago 🤣

[Steve Bullman]

Think you can claim for consumables also. So for example if you bought a pallet of aspen 6 months ago and still have half of it you can claim vat back on that half 

[Muddy42]

I would have thought you’ll have two types of customer. Firstly customers that in turn have a way to reclaim VAT through a business, they shouldn't care.

Then those private customers who suffer full VAT out of already taxed income/savings. I think you would be naive to think the extra 20% cost wont make a difference to some of these people.

[Dan Maynard]

17 hours ago, Will C said:

Sounds right from memory. I seem to remember You can only claim for capital items you still have. Landrover parts from a year ago wouldn’t count they would of fallen off again months ago 🤣

Hmm . Did buy a tipper trailer 3 years ago though, that would count.

[Stephen Blair]

Business assets within 4 years and I think fuel for last 6 months.  Expect a Vat inspection when you first register, they will keep you right.  They are not out to get you.  When I got mine back in 2001/2 they found another £1400 I missed.

[Donnie]

I went self employed as a cutter almost two years ago and I am now going into my 3rd tax return year in April. 
 

On average 48,000 income before tax and expenses.

 

I invest a hell of a lot of my wages into my work, a lot on diesel, van repair bills, petrol, saws and reels of chain all on which I pay VAT on. I can count on saws and a road tow splitter that I've bought this year, I've spent around 7,000 including VAT. PPE and chains etc easily 2-3000.
 

Along with a lot of diesel doing 20-30K miles a year. 
 

I'll be doing my books in a week or two, and I'd be surprised if my total expenses and investments etc including vat were below 20,000. 

 

I only work for companies who are VAT registered, mainly big harvesting companies. 
 

Am I better of being VAT registered? 
 

Edited April 2 by Donnie