VAT registered

[Rick2517]

had a meeting with my accountant today. HMRC have closed the loophole you can only now claim back 6 months on tangible items. Its no longer 3 years dont be fooled.

God i hope ure wrong, that was the only bonus i could see of going vat reg!!

[mikeyg]

quote from HMRC website, 'You can generally reclaim VAT on goods you bought up to four years before you registered for VAT, and services you bought up to six months before you registered. Remember too that you may be able to backdate your VAT registration by up to four years although once your date of registration has been agreed with HM Revenue & Customs (HMRC), it cannot normally be changed.'

 

HM Revenue & Customs: Purchases made before VAT registration

[mikeyg]

in the same boat by the way. i'm going down the flat rate scheme route. have a look and see if you can see any floors. i can't yet.

[benedmonds]

in the same boat by the way. i'm going down the flat rate scheme route. have a look and see if you can see any floors. i can't yet.

 

We're on the flat rate, works well for us!

[mikeyg]

is it right that you charge 20% but only pay 10.5%. i wasnt going to even mention about VAT to domestic customers.

[skyhuck]

is it right that you charge 20% but only pay 10.5%. i wasnt going to even mention about VAT to domestic customers.

 

Yes, BUT you cannot claim back the VAT on every day business expenses, fuel, repairs and maintenance, etc, you can claim back the VAT on capital purchases of over £2K and your turnover must be under £150K I think.

 

I'm on the flat rate scheme, it works out for me, but you need to do your sums and see if it would work out OK for you.

[Rick2517]

in the same boat by the way. i'm going down the flat rate scheme route. have a look and see if you can see any floors. i can't yet.

Ive just changed accountant to a company recommended to me to be hot on VAT so il let you know what feed back i get in the next few days.

I have briefly looked into the flat rate but to be honest i don't fully understand it so im gonna leave it down to the guys who get paid a fortune for this sort of stuff!

Also the new accountant has advised that i look into going LTD as this can have some great tax relief benefits!! Im only a small company so all this sounds a bit daunting to me but im just gonna go with it and hope for the best lol "thats worked for me so far "

[benedmonds]

is it right that you charge 20% but only pay 10.5%. i wasnt going to even mention about VAT to domestic customers.

 

I think you pay 12.5% now under forestry although I think you get a 1% discount in the first year.

 

You charge 20%, took me a while to get my head round it.

 

It is simple, just pay 12.5% of your sales to the VAT man!

 

As said you can claim the VAT on capital purchases (stuff - not services or fuel etc) over £2k

 

You don't have to keep lots of receipts, so apart from the VAT returns there isn't allot of paperwork. You can pay your VAT monthly or what you think it will be to save a big shock at the end of the year

[Rick2517]

I think you pay 12.5% now under forestry although I think you get a 1% discount in the first year.

 

You charge 20%, took me a while to get my head round it.

 

It is simple, just pay 12.5% of your sales to the VAT man!

 

As said you can claim the VAT on capital purchases (stuff - not services or fuel etc) over £2k

 

You don't have to keep lots of receipts, so apart from the VAT returns there isn't allot of paperwork. You can pay your VAT monthly or what you think it will be to save a big shock at the end of the year

Did you find that this had a big impact on winning jobs by adding vat? Im thinking positive about it but ive lost jobs before because the other guy has quoted £10 less!! As much as i hate to admit it i think the days of customers paying extra for a professional service are coming to an end!! "in most cases"

[DN22 Gardening]

got our accountant coming on thursday to discuss this very issue.

 

done a few large jobs this winter and are VERY near the threshold, also nearly lost a £8500 job coz i had to include the VAT i pay on materials in my price

 

talking to few successful business men i know, the general feeling is i should go LTD

 

dread to think what adding vat will do to the domestic side