Pros and cons of being VAT registerd

[dig-dug-dan]

Yes indeed. You already reap the benefits. But if you havent been charging vat on your logs, you should have been. You might owe the hmrc some money

[Woodworks]

It is only a small sideline at the moment. Have been running the logs separately from the farm but not claiming any VAT back on anything. Is this wrong?

[dig-dug-dan]

If you are vat registered, you should have been charging vat on log sales, 5% to end users and 20% to resellers. You should also be claiming back vat on fuel, tools, repairs, basically anything you have spent money on for the business.

Sound like you may need some urgent accounting work

How comeyou registered for vat in the first place. Did you realise that when you first register, you can claim back vat on tools and equipment purchased up to four years previous?

[Woodworks]

Sounds like I better get some advise and get it sorted. Think the tax man has had the better end of the deal so far as I have already spent a fair bit on kit including the VAT:thumbdown:

[Stephen Blair]

You can claim back 4 years vat assets, and your situation sounds perfect for being registered!

Claim 20%, charge 5%!

Very simple process, call your local Vat office and they will keep you right(

[TimberCutterDartmoor]

You cannot register a seperate sideline for vat and not the other. When you register, you are registered not the company, which means anything to do with the small holding will be liable for vat

 

Yes you can! True you can't have 2 sole traderships or partnerships with one VAT registered and the other not. But you CAN have a LTD company AND a sole tradership.

 

Thats correct. I went vat registered for the reasons stated but do gardening work in the summer which I have to charge 20% on

 

As above, you could run 2 separate entities if 1 is LTD.

 

Yes indeed. You already reap the benefits. But if you havent been charging vat on your logs, you should have been. You might owe the hmrc some money

 

assuming he was vat reg..

 

It is only a small sideline at the moment. Have been running the logs separately from the farm but not claiming any VAT back on anything. Is this wrong?

 

no, not if you're not vat reg'd.

 

If you are vat registered, you should have been charging vat on log sales, 5% to end users and 20% to resellers. You should also be claiming back vat on fuel, tools, repairs, basically anything you have spent money on for the business.

Sound like you may need some urgent accounting work

How comeyou registered for vat in the first place. Did you realise that when you first register, you can claim back vat on tools and equipment purchased up to four years previous?

 

Four years on tangiables, 6 months on non-tangiables, although you must still have the intangiables so diesel long burnt not included!

 

In my experience, not being VAT registered made us uncompetitive on larger jobs but it killed the small jobs. Firewood is a no-brainer as mentioned above, you are 15% up.

 

Can recommend an accountant for all this is you want...

[baz]

Becoming VAT registered isn't as easy as it once was due to all the VAT fraud schemes past, present and undoubtedly future. Assuming you can get yourself VAT registered then it is worthwhile as several posters have already pointed out, you reclaim all the expenditure items that come with 20% VAT and charge 5% on the firewood (any delivery charge would be at 20%, hence why delivery is always a no cost option for VAT registered operations).

 

One thing though, if you do go VAT registered never piss off the excise man. They have powers of search and siezure way beyond other government outfits, including the police.