How did becoming VAT registered change your business?

[Mick Dempsey]

6 minutes ago, Donnie said:

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? 
 

I don’t think you turn over enough, so there’s no choice.

[Donnie]

6 minutes ago, Mick Dempsey said:

I don’t think you turn over enough, so there’s no choice.

I think you can voluntarily register for VAT. 
 

Was just a thought as I spend so much doing my job etc. 

[Mark Bolam]

You can register at any turnover Mick.

Sounds like it would be well worth it in your case Jake.

[Mick Dempsey]

I stand corrected.

[Steve Bullman]

24 minutes ago, Donnie said:

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? 
 

Yes 100%

[Joe Newton]

53 minutes ago, Mick Dempsey said:

I don’t think you turn over enough, so there’s no choice.

Yeah you can. For most people VAT registration is something to avoid. For some it's an opportunity.

 

I'm in a similar mindset to Donnie.

 

As a freelance climber i obviously earn far more than him, and get girls with bigger titties.

 

In seriousness, my expenses are probably a good bit lower, but just for the CAPEX reclaim and the vat off my fuel it would save me a bit each year.

 

The only issue is I'll have to start paying an accountant. My dad does my books (overqualified) but isn't chartered.

 

Another benefit is that your tax return is kept up to date alongside your quarterly vat returns. 

[Donnie]

13 minutes ago, Joe Newton said:

Yeah you can. For most people VAT registration is something to avoid. For some it's an opportunity.

 

I'm in a similar mindset to Donnie.

 

As a freelance climber i obviously earn far more than him, and get girls with bigger titties.

 

In seriousness, my expenses are probably a good bit lower, but just for the CAPEX reclaim and the vat off my fuel it would save me a bit each year.

 

The only issue is I'll have to start paying an accountant. My dad does my books (overqualified) but isn't chartered.

 

Another benefit is that your tax return is kept up to date alongside your quarterly vat returns. 

So as VAT registered, you pay tax quarterly too as well as your vat returns?

[Steve Bullman]

20 minutes ago, Joe Newton said:

Yeah you can. For most people VAT registration is something to avoid. For some it's an opportunity.

 

I'm in a similar mindset to Donnie.

 

As a freelance climber i obviously earn far more than him, and get girls with bigger titties.

 

In seriousness, my expenses are probably a good bit lower, but just for the CAPEX reclaim and the vat off my fuel it would save me a bit each year.

 

The only issue is I'll have to start paying an accountant. My dad does my books (overqualified) but isn't chartered.

 

Another benefit is that your tax return is kept up to date alongside your quarterly vat returns. 

You don’t need an accountant if you’re vat registered.

 

the part about getting girls with bigger titties is correct though.

 

when I went vat registered (voluntarily) o saved enough each month to cover the finance in a brand new Navara 

[Donnie]

9 minutes ago, Steve Bullman said:

You don’t need an accountant if you’re vat registered.

 

the part about getting girls with bigger titties is correct though.

 

when I went vat registered (voluntarily) o saved enough each month to cover the finance in a brand new Navara 

I already pay an accountant for my books as a sole trader, as he easily saves me the money I pay him with his tricks and it keeps everything right so not bothered for paying an accountant at all. Worth letting them crack on!

 

 

[Joe Newton]

15 minutes ago, Donnie said:

So as VAT registered, you pay tax quarterly too as well as your vat returns?

No, but because you've been doing quarterly vat returns your tax return will effectively be done for you come the time.

 

Nobody likes paying tax more frequently than necessary. Given the choice I'd do it every hundred years or so. 

9 minutes ago, Steve Bullman said:

You don’t need an accountant if you’re vat registered.

 

the part about getting girls with bigger titties is correct though.

 

when I went vat registered (voluntarily) o saved enough each month to cover the finance in a brand new Navara 

I think i was confusing being VAT reg with being limited. Good to know.

 

I don't want a new pickup. The extra money would be useful for coke and bitches though.