VAT Limit

[Mark Bolam]

Congratulations by the way.

 

You lads must be getting through plenty of graft.

[Kev Stephenson]

Go Ltd on the logs and VAT register at the same time for the 5% sell and 20% buy

[Steve Bullman]

Go Ltd on the logs and VAT register at the same time for the 5% sell and 20% buy

and of course you'll be using far more fuel in the firewood business than tree surgery business

[Kev Stephenson]

It's amazing how uneconomical a saw is when logging up, plus it gets through loads of chains, files, etc where the surgery ones never need sharpening

[Steve Bullman]

not to mention chainsaw boots and trousers

[Jellystock]

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

 

I'm in a partnership in a LTD company, the threshold is still the same, 70k, its just been increased by 3K.

 

If you aren't limited, start one up and then you'll have two separate thresholds,

 

Sole trader and LTD.

 

With me and my partner as individual sole traders and a shared LTD Co we have 3 different ways of earning dough:thumbup:

[robbo 110]

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

 

i dont entirely agree with greengrafters quote but will say a good accountant is worth his/hers weight in gold, particularly when playing the 'peter' robs 'paul' game!!!

Edited February 18, 2011 by robbo 110
add to add 'hers' to the paragraph!!!!!!!!

[Gareth Dalzell]

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

 

"Partnerships are regarded as a single entity for VAT purposes. It is unwise for a husband and wife to maintain that they are trading separately without HMRC’s agreement in writing."

 

The above is copied from the HMRC online VAT guide - might be worth a read in full. Now where's that fan - splat:001_huh:

[greengrafter]

The guy who told me is in some sh** then.I won't name him though I could bribe him:001_smile:

 

I just went Vat registered it was easier at the time and it was nice claiming 3 years Vat back on Van, chipper, kit = £££££'s.

 

I'm de registered now though after the last 3 years wern't the best and all my work is for domestic customers now any way.

 

Now turnover is getting back up to the limit again I'd go for the Ltd company and sole trader option but you can't have 2 companies 1 Vat reg and the other 1 not if they are both doing the same work activities.

 

Its always best to get a good accountant, they save you alot more than they cost you!!!!

 

O and as Mark Bolam said

 

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

 

and he wont stop for a fag break either!!!

[Old Mill Tree Care]

Don't reduce your prices to the client just to benefit them, you're in business for yourself after all. When I became vat registered I maintained my prices, added the vat and found many clients viewed me as a more credible contractor and I got more work as a result.

 

Its the same syndrome we all suffered from before buying our first chipper. Couldn't imagine how we would pay for it, then two weeks after getting it, couldn't believe we didn't buy one a year earlier.