VAT question

[Log-ologist]

Why would you want to?

 

I expect it was because like me I should have registered in april but only discovered I needed to register in september when I did my accounts. My debt was back dated to when my rolling turnover topped the 57k mark. ( this was a few years ago)

[benedmonds]

We pay an estimate based on turnover each month. I guess at the end of the year we'll get a bill or a cheque.. Only just coming to the end of our first year paying the VAT so will soon see how it's worked out. Hoping to claim back for the chipper and truck we brought just previous to becoming Vat registered as you can claim for the previous 2 or 3 years on capital purchases over 2 or 3 grand.. Hopefuly the accountant will sort it!

[treesnatcher]

But what if you realise that you've been working for buttons like many in our industry and up your day rate to a proper amount and start to make far more than the previous year?

Good comment

[Paul Jenks]

On a point of order. VAT is now charged at 20%.

 

From memory, a while ago now, when my turnover was expected to go over the threshold I became VAT registered at the end of the month following the month my turnover went over the threshold. So we went over at the beginning of September and on Oct 30 any invoices we issued after this date we had to apply VAT. Any invoices issued before this date were not subject to VAT.

 

HMRC are generally very helpful, if a little humourless. If you are going to make a retrospective claim for capital expenditure that means you actually claim more money back from HMRC than you collect in the first 3 months of being registered, expect either a visit or a request for an interview from HMRC, just to keep you on your toes.

 

The flat rate system is ok. You collect VAT from your clients at 20% and pay HMRC approximately 10%, instead of going through all your receipts and working out who owes

what to whom. I think this has a maximum turnover threshold of about £150k.

 

We never used it as I planned to go through this maximum threshold pretty swiftly.

 

If anyone has doubts about the use or validity of someones VAT status report them to HMRC. I do like that calculator thingy.

[skyhuck]

On a point of order. VAT is now charged at 20%.

 

.

 

This thread is 3 years old.

[Andy Collins]

Doesnt time fly!

[Big Bolt]

Well andy after 3 years did he or did he not iv'e been waiting and the suspence is killing me

[Andy Collins]

Ha, he is no longer trading, I dont know the ins and outs tbh.

[windfall]

......and the rest!!

 

If your Limited company is registered in the Isle of Man then the public is not able to see prior year accounts, only basic company ownership info. Which is nice.

 

Anyone want the number of a local company formations guy? lol

[easy-lift guy]

Is the VAT charged for all good and services for items/services bought/sold in the UK. I guess by reading some replies that some deductions are permitted.