How did becoming VAT registered change your business?

[Donnie]

Surely this is a problem for my employer then as they hold the decision to employ us or not. Theres guys on machines that work only for them, for 20 odd years. 

[Joe Newton]

Those rules changed with IR35 IF I recall correctly.

 

No issue these days working full time on a self employed basis. 

[Donnie]

So for example if I were to be vat registered. 
Day rate goes from 220 to 220 plus vat. (264).  
I keep 44 quid in a different account for every day worked. (220 a week, 4000 for 3 months worked for VAT).

 

I keep receipts for the abundance of shit I buy that I don't really need and claim that against the 4,000 pound per 3 months. Say I spend 5000 in total on shit like diesel, tools for the job, consumables, big titted bitches in that 3 months. By rights I will be able to claim back 20 percent of the 5000, which is 1000.

 

So I would only need to give the VAT man 3,000 back out of the 4,000 earned off of increase in day rate with adding VAT on. 
 

Or am I missing something?

Will I need to pay another tax or anything on this money?

 

Also to add, I would be staying as sole trader. 

Edited April 3 by Donnie

[butters]

22 minutes ago, Donnie said:

So for example if I were to be vat registered. 
Day rate goes from 220 to 220 plus vat. (264).  
I keep 44 quid in a different account for every day worked. (220 a week, 4000 for 3 months worked for VAT).

 

I keep receipts for the abundance of shit I buy that I don't really need and claim that against the 4,000 pound per 3 months. Say I spend 5000 in total on shit like diesel, tools for the job, consumables, big titted bitches in that 3 months. By rights I will be able to claim back 20 percent of the 5000, which is 1000.

 

So I would only need to give the VAT man 3,000 back out of the 4,000 earned off of increase in day rate with adding VAT on. 
 

Or am I missing something?

Will I need to pay another tax or anything on this money?

 

Also to add, I would be staying as sole trader. 

yes this is correct. They can’t tax the vat as it has in theory been paid just you’ve been able to reclaim some of your vat expense to take the burden of vat off you. 
 

just remember though that 20% only applies to adding on not taking off. Your 5000 with 20% off would be something like 833

[Donnie]

3 minutes ago, butters said:

yes this is correct. They can’t tax the vat as it has in theory been paid just you’ve been able to reclaim some of your vat expense to take the burden of vat off you. 
 

just remember though that 20% only applies to adding on not taking off. Your 5000 with 20% off would be something like 833

How come it would be in theory less than 20 percent of 1000?

[Mark Bolam]

12 hours ago, Joe Newton said:

Those rules changed with IR35 IF I recall correctly.

 

No issue these days working full time on a self employed basis. 

 

You MIGHT be ok.

 

Good link here -

 

Employment status: Self-employed and contractor - GOV.UK

WWW.GOV.UK

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Employment status (worker, employee, self-employed, director or contractor) affects employment...

 

[Mark Bolam]

A couple of my mates are on harvesters up there Jake, can’t remember if I’ve asked you before if you’ve worked with them?

’Dangerous’ Brian Cowan and Chris Hunter.

[Will C]

7 minutes ago, Donnie said:

How come it would be in theory less than 20 percent of 1000?

£100 plus 20% is £120

 

£120 - 20% is £96 but you can only claim the £20vat back not £24. 
 

clear as mud isn’t it?!

[Donnie]

6 minutes ago, Will C said:

£100 plus 20% is £120

 

£120 - 20% is £96 but you can only claim the £20vat back not £24. 
 

clear as mud isn’t it?!

Let me take a few days to process that one. 
 

I feel like I get it. 
But I also feel like I don't. 

Edited April 3 by Donnie

[Will C]

Simple answer is you can only claim back what has been added on. Look at your fuel receipt. It will

show 

basic price

vat added

total price. 
 

You can claim back the vat added bit