VAT Limit

[Hodge]

Evening all, been going over my books today and it's looking like I'm gonna hit the VAT limit before my year end of march 31st. This would have a massive impact on me as 90% of my work is private. Anyone got any advice or words of wisdom please?

[tractorboy1]

Stop working?

[Rupe]

Don't invoice anything until april!

 

Be careful though, its not counted on the financial year, its on the last 12 months (any 12 month rolling period) so if you dont go over it by 31 march, you might by 30th april, or may/june/july etc etc. It does not reset to zero in April.

[Kev Stephenson]

Split the log business from the tree surgery business, buy the logs from the tree business to increase your outgoings.

 

You would need to dedicate kit to each business, i.e 1 saw and the splitter, processor, tractor, etc.

[Steve Bullman]

Split the log business from the tree surgery business, buy the logs from the tree business to increase your outgoings.

 

You would need to dedicate kit to each business, i.e 1 saw and the splitter, processor, tractor, etc.

 

i think this would only work if both the companies are limited

[skyhuck]

i think this would only work if both the companies are limited

 

No, I ran a VAT registered Ltd Co and a separate sole trader Co, for many years with no problems, as has been said you need separate gear for each Co.

[Steve Bullman]

ok...so 1 at least of them has to be limited...i worded myself poorly

[greengrafter]

Evening all, been going over my books today and it's looking like I'm gonna hit the VAT limit before my year end of march 31st. This would have a massive impact on me as 90% of my work is private. Anyone got any advice or words of wisdom please?

 

go into partner ship with your wife. I'm not 100% sure but the guy who told me said the limit is doubled. If its wrong he's in some serious shhhhh

[Mark Bolam]

Don't worry too much Hodge.

 

Say you charge £480 for a domestic job now. No VAT.

 

You could charge £400 + VAT (still £480) to domestic customers so you don't overcharge them.

 

Sure, you earn £80 less, but think of the VAT you can claim back on fuel, kit, vehicles etc., and you can back claim for 3 years on purchases where you still have the kit.

 

Commercial jobs, you're laughing.

 

Word of caution though. Never, ever mess around with the VAT man. He will shaft you very hard with no foreplay or lubrication whatsoever!

[skyhuck]

go into partner ship with your wife. I'm not 100% sure but the guy who told me said the limit is doubled. If its wrong he's in some serious shhhhh

 

Who dreams up this nonsense????????????????