Advice for newly V.A.T registered company

[John Shutler]

Not if its on lease finance, you pay the vat monthly with your payment.

 

ive no idea really

all I know is im better off:thumbup:

[Ian C]

Yeah I agree john.

 

I would guess if you pay vat monthly on kit like I do you wont be a able to claim back.

 

You flat rate or normal?

[gensetsteve]

I thought the money you lads earn a range Rover sport would be straight out the back pocket

[Ian C]

I thought the money you lads earn a range Rover sport would be straight out the back pocket

 

It is just have chippers on tick lol

[gensetsteve]

It is just have chippers on tick lol

 

I think I would get more pleasure from a chipper certainly it would earn more money and break down less.

[Ian C]

I think I would get more pleasure from a chipper certainly it would earn more money and break down less.

 

Lol deffo be more reliable.

[Al Cormack]

No.

 

On the "Fate rate scheme" you charge 20%, but pay 11% of turnover to the VAT man and only claim back VAT on purchases over £2K.

 

So its far less complicated, simply calculate 11% of turnover each quarter and pay that, plus there is little scope for you making an error and claiming for something you should not have and ending up owing a lump of VAT.

 

My accountant looked at it and reckoned it saved me around £800 per year.

 

I think you pay less for the first year 9% or 10%

 

I'm claiming back 10.5% Huck. You are giving HMRC 0.5% too much! :eek:

[skyhuck]

I'm claiming back 10.5% Huck. You are giving HMRC 0.5% too much! :eek:

 

My accountant does mine, so it could well 10.5.

[likeitorlumpit]

Unfortunately the flat rate scheme only applies to small businesses with a turnover less than 150K. That will suit you for a newly VAT registered business but may not last too long. Depends how you grow. Sounds like it's worth considering though.

[Matthew Storrs]

I'm thinking of registering for Vat even tough I'm not at the thresh hold. Having just purchased a digger, tractor and post knocker in the last 3 months it does make me cringe when iv paid over 6k on VAT just on those 3 items, probably a case of shutting the stable door after the horse has bolted now!

One way iv thought is to put my prices up at least 10%. Basically going halves on the VAT I have had to pay on machinery to do there jobs without charging VAT!