Re-Registering for Vat

[gensetsteve]

My take on it is that the government likes to help young businesses and encourage competition.

So having a £75k vat threshold gives new starts and one man bands a competitive edge in the domestic market where they will usually be learning to hone their trade.

VAT kicks in when you want it to but has to at £75k

You then are in a situation where you are developing and probably employing

So vat isn't your only problem- H&S Risk stuff tickets paperwork etc.

Then they dangle the carrot of Limited liability which is a weight off the shoulders of the business owner- although it comes at a cost (higher accountant fees and bank charges).

Now once in this position there are tax advantages to be had- Pay yourself tax free £7k and take dividends especially as you are then probably in the 40% tax bracket. There are some other benefits.

So to summarise- the whole thing is aimed at progressing your business. i.e, getting bigger - sometimes to the point of just having to do so

 

Yeah its called a tread mill often your allowed of early if you die. You cant get ill the country cant afford it. There are a few people who could do with a turn on the treadmill in this country.

[likeitorlumpit]

Yeah its called a tread mill often your allowed of early if you die. You cant get ill the country cant afford it. There are a few people who could do with a turn on the treadmill in this country.

 

So I'm not the only one who sees it like this:sneaky2:

[Stephen Blair]

No probs, just re registered simples:)

[Billy68]

Can you set up another company, have one for commercial. The other for domestic work. Sounds complicated but could be done in a legit way.

I know someone who set up another company to avoid vat and justed lumped it buying gear.

Vat is a stinger at the moment though.

 

Not a good idea to do that - google "disaggregation vat" and see what comes up. Essentially you'd have to prove that the two companies had nothing to do with each other.

 

My advice would be to speak to your accountant - and if they're not helpful, find a new one!

[hardtop110]

Its also worth looking at the flat rate schemes - HM Revenue & Customs: Flat Rate Scheme for VAT