VAT on Truck

[Steve Bullman]

  niftysteve said:

i thought you can only claim the vat back if you are vat registered

if you are non vat reg then the accountant claims 100% for a commercial vehicle and less for a car as far as i can remember

He's on about back claiming if he goes vat registered at a future date Steve

[Phil71]

Just thought I would mention that if your turnover is over something like £75,000 you have to go VAT registered.

You can go on the flat rate scheme where you charge the full rate (20%), but you pay 9% to the Inland Revenue and keep the rest. You can't claim back VAT on all purchases, only on the big stuff, so you could claim the VAT back on your van.

[Woodworks]

  Phil71 said:

Just thought I would mention that if your turnover is over something like £75,000 you have to go VAT registered.

You can go on the flat rate scheme where you charge the full rate (20%), but you pay 9% to the Inland Revenue and keep the rest. You can't claim back VAT on all purchases, only on the big stuff, so you could claim the VAT back on your van.

 

Thanks Phil

 

Sadly not anywhere near 75K turnover.

[R5log]

  niftysteve said:

i thought you can only claim the vat back if you are vat registered

 

if you are non vat reg then the accountant claims 100% for a commercial vehicle and less for a car as far as i can remember

 

 

Claim vat back, but not registered?

Good luck

[Hodge]

  Phil71 said:

Just thought I would mention that if your turnover is over something like £75,000 you have to go VAT registered.

 

You can go on the flat rate scheme where you charge the full rate (20%), but you pay 9% to the Inland Revenue and keep the rest. You can't claim back VAT on all purchases, only on the big stuff, so you could claim the VAT back on your van.

 

 

£81k this year is the limit

[Phil71]

  Hodge said:

£81k this year is the limit

 

Cheers Hodge, thought I might have been a bit out!

[Hodge]

  Phil71 said:

Cheers Hodge, thought I might have been a bit out!

 

 

It keeps going up every year, safely not enough as I've just registered.

[Phil71]

  Hodge said:

It keeps going up every year, safely not enough as I've just registered.

 

I registered last year, and was worried about it but things have turned out fine. You lose out on the odd job due to the VAT but if your reputation is good people don't worry about it!

[gensetsteve]

You can 100% on a van or commercial things may of changed but you can only claim for £12,000 of value on a car per year so a 50 k car will take many years to right down in the mean time you will be paying tonnes of tax.

 

You can register for vat as you start your business with any turn over. If most of your customers can claim the vat back it's almost a no brainier. It also disciplined you into completing your books every 3 months rather than waiting until you have forgotten or lost the receipts.

 

I am looking into claiming back the vat on a new landcrusier car. Some are vat applicable to certain trades if you need them for work. Not sure of the ins and outs but I think they then tax you for private use which will 100's of pounds a month. I don't know how they handle that because I am sole trader not wage slave or limited does anyone know if it's a loop hole.

[Steve Bullman]

I was under the impression you could only get the vat back if you have a commercial version Steve...ie blacked out back windows and no back seats. There are loopholes though where you can add some seats in if done correctly..I don't know the ins and outs though