going vat registered

[Stephen Blair]

You only give it back if you sell the kit, Huck it's only if the kit is sold for £5k or more giving the minimum Vat of £1000.

So basically guys if you want to buy some new kit or renew your old stuff you bought less than 4 years ago, like a van, chipper and a whole pile of saws, go Vat Reg, claim you previous Vat, put it towards your new kit which youngest the vat back on to, put a lot of new kit into your business, reduce your yearly profits by capital expenditure and depreciation be Vat Reg for the minimum about of time then de register.

. You will pay very little tax for the next year and not have a large vat outlay. If you are planning on buying a home or financing new larger kit don't write too much off on depreciation the first year and keep your profit higher to help borrowing.

It's not a dodge it's following the rules they put in place.

My Vat inspection found another £1100 the bookkeeper missed.

[skyhuck]

You only give it back if you sell the kit, Huck it's only if the kit is sold for £5k or more giving the minimum Vat of £1000.

So basically guys if you want to buy some new kit or renew your old stuff you bought less than 4 years ago, like a van, chipper and a whole pile of saws, go Vat Reg, claim you previous Vat, put it towards your new kit which youngest the vat back on to, put a lot of new kit into your business, reduce your yearly profits by capital expenditure and depreciation be Vat Reg for the minimum about of time then de register.

. You will pay very little tax for the next year and not have a large vat outlay. If you are planning on buying a home or financing new larger kit don't write too much off on depreciation the first year and keep your profit higher to help borrowing.

It's not a dodge it's following the rules they put in place.

My Vat inspection found another £1100 the bookkeeper missed.

 

I'm pretty sure your incorrect Stevie, this is taken from an accountancy site

 

So you need to calculate the gross market value including VAT of:

 

Stock on hand which you claimed input VAT on.

Assets on hand – such as machinery or vehicles – which you claimed input VAT on.

Land and property in use by the business which you claimed VAT on.

The good news is that if the total VAT element of these assets is below £1,000 you won’t have to pay anything. This means that if you are considering de-registering and the tax element is just above £1,000 you should consider running down your stocks to get the tax due under £1,000. If you do this, be prepared to defend your market value calculation if you get an enquiry!

[simonm]

We also do a lot of fencing, would you charge vat on the whole cost of the job or just the labour side?

[skyhuck]

We also do a lot of fencing, would you charge vat on the whole cost of the job or just the labour side?

 

The whole job, but you will get the vat on the materials back:thumbup1:

[Ian C]

We also do a lot of fencing, would you charge vat on the whole cost of the job or just the labour side?

 

I just add vat on the labour side as your materials will probably have vat on to start with.

[simonm]

This vat game sounds like it could be good on the money making side so long as the work still rolls in.

[Ian C]

Lol I wouldn't get carried away with the money making thing! Pretty much everyone you deal with as a business will charge you vat so you may aswell join the club to benefit your business. It's not really the big frightening hoo har people make it out to be.

[Stephen Blair]

I'm pretty sure your incorrect Stevie, this is taken from an accountancy site

 

 

 

So you need to calculate the gross market value including VAT of:

 

 

 

Stock on hand which you claimed input VAT on.

 

Assets on hand – such as machinery or vehicles – which you claimed input VAT on.

 

Land and property in use by the business which you claimed VAT on.

 

The good news is that if the total VAT element of these assets is below £1,000 you won’t have to pay anything. This means that if you are considering de-registering and the tax element is just above £1,000 you should consider running down your stocks to get the tax due under £1,000. If you do this, be prepared to defend your market value calculation if you get an enquiry!

 

 

When I de registered I sold all the stuff I bought for a contract so I don't know the situation if the kit was being kept!

I stand corrected

[kevinjohnsonmbe]

This vat game sounds like it could be good on the money making side so long as the work still rolls in.

 

 

I don't think anyone has mentioned additional accountancy fees associated with preparation & filing VaT returns yet.

 

Depending how much you prep yourself / how much the additional service cost might be, it needs to be included in the calc's to determine wether you'd be better off or not.

 

Great thread! I'm seeing accountant to arrange VaT Reg before end Feb so it's been a great read.

[Mesterh]

I have no experience moving from a non vat to a vat registered company but im sure you cant claim xx years worth of vat back on previous purchases.

 

Well, I dont think you can claim every purchase back as a guy I know thought he could and was rubbing his hands, accountant soon set him straight!