VAT on Truck

[gensetsteve]

Claim vat back, but not registered?

Good luck

 

If the vehicle cost 10 k plus vat = 12k. If you are not vat registered you claim 12 k back against your tax. So often being non vat registered is not as bad as they think. But bad news if you have low earnings and only pay tax at 10% rate and you have to wait up to year to get the money back rather than a couple of months.

[hamdogg]

What's the 10% tax threshold?

[Billy]

I thought the lowest tax band was 20% plus NI AT 7-9% ish ?

[gensetsteve]

You could be right iperhaps I am thinking no tax on the first 10k but that could be wrong too 😊.

[Steve Bullman]

You could be right iperhaps I am thinking no tax on the first 10k but that could be wrong too 😊.

thats nearer the mark...think its closer to 9k though or thereabouts

[Steve Bullman]

If the vehicle cost 10 k plus vat = 12k. If you are not vat registered you claim 12 k back against your tax. So often being non vat registered is not as bad as they think. But bad news if you have low earnings and only pay tax at 10% rate and you have to wait up to year to get the money back rather than a couple of months.

 

It is pretty much as bad as you think actually.

 

You only get to put that extra 2k against your books, saving yourself approximately £400 on the 2k...thats a £1600 difference...not to mention all the other vat you claw back over the course of the year

[gensetsteve]

It is pretty much as bad as you think actually.

 

You only get to put that extra 2k against your books, saving yourself approximately £400 on the 2k...thats a £1600 difference...not to mention all the other vat you claw back over the course of the year

 

True put like that makes a strong argument to be vat registered especially if most of your clients are commercial. It's nice getting a cheque from the vat man