VAT question

[skyhuck]

Why would you want to?

 

Because if you hit the turnover threshold for VAT registration you have to pay VAT for the whole year,I would rather the customer pay the VAT, and claim it back, than have it come out my profit.

[igottacabstar]

Because if you hit the turnover threshold for VAT registration you have to pay VAT for the whole year,I would rather the customer pay the VAT, and claim it back, than have it come out my profit.

 

If, at your year end, you look likely to exceed the VAT threshold in the following years trading you should register for VAT immediately - not wait until you actually hit the threshold. The scenario you describe should never happen, unless your accountant was asleep at your last meeting.

[skyhuck]

If, at your year end, you look likely to exceed the VAT threshold in the following years trading you should register for VAT immediately - not wait until you actually hit the threshold. The scenario you describe should never happen, unless your accountant was asleep at your last meeting.

 

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?

[igottacabstar]

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?

 

Between myself and my accountant I've always got predicted turnover & profit estimated for the next 3 years on paper. If you've got a good accountant the predictions should be pretty acurate. I would never suddenly double what I charge halfway through a trading year, you should factor in an increase in your rates in advance.

[skyhuck]

I would never suddenly double what I charge halfway through a trading year, you should factor in an increase in your rates in advance.

 

Why? if you can make more, I say,make more!

[igottacabstar]

Why? if you can make more, I say,make more!

 

Just the way I do things, everything always planned out then just try and stick to the plan!

[benedmonds]

If you are approaching the VAT threshold look into the Flat Rate scheme, we've discussed it on here before but you only pay 9% but still charge 17.5..

 

It still hurts, but not so bad. Going Vat registered really stings. It's fine for the comercial stuff good even, but if you do a lot of private, joe public doesn't care just wants the cheapest.. I've been working loads more but the bank balance doesn't seen to change! Also IMO it's worth paying monthly as you'll end up with a BIG bill at the end of the year.

 

One positive side is when giving verbal quotes and the punter accepts a bit readily and you realise you've gone to low you can say plus VAT of course...

[igottacabstar]

If you are approaching the VAT threshold look into the Flat Rate scheme, we've discussed it on here before but you only pay 9% but still charge 17.5..

 

It still hurts, but not so bad. Going Vat registered really stings. It's fine for the comercial stuff good even, but if you do a lot of private, joe public doesn't care just wants the cheapest.. I've been working loads more but the bank balance doesn't seen to change! Also IMO it's worth paying monthly as you'll end up with a BIG bill at the end of the year.

 

One positive side is when giving verbal quotes and the punter accepts a bit readily and you realise you've gone to low you can say plus VAT of course...

 

I didn't find that becoming VAT reg'd made any difference to my private work, all of my serious competitors are VAT reg'd anyway. I think people expect to pay VAT when they employ any type of tradesman.

 

I pay my VAT quarterly, how do you get to pay it monthly?

[Log-ologist]

is there a site to check whether or not someone is vat reg?

 

 

This will check if its valid but will not give the company name.

 

http://ec.europa.eu/taxation_customs/vies/vieshome.do?selectedLanguage=EN

[Log-ologist]

In the UK, traders and businesses required to be registered for VAT purposes are issued with a VAT registration number by Her Majesty's Revenue and Customs (HMRC) in order to identify their registration. This number is not random or sequential, but actually includes a check digit1 to confirm that the number is genuine and correctly constructed. VAT numbers are issued in the form 123 4567 89. This however, is not a valid VAT number, so for the purposes of this Guide Entry the number 831 4958 16 will be used.

 

The calculation

 

The check digit calculation appears quite complex, but is in fact surprisingly simple. The first seven digits of the VAT number are assigned a multiplier beginning with eight for the first digit and descending to two for the seventh.

 

8 3 1 4 9 5 8 (The first seven digits)

8 7 6 5 4 3 2 (The multiplier)

64 21 06 20 36 15 16 (The results)

 

After applying the multiplier, the results are totalled.

 

64+21+6+20+36+15+16 = 178

 

From the total, 97 is subtracted as many times as is necessary, until a negative, two digit number is produced.

 

178-97 = 81

81-97 = -16

 

This negative number becomes the check digit and relates to the last two digits of a valid VAT number.

 

(1) Although it is actually two digits

 

 

(source=borrowed)