going vat registered

[R5log]

What happens if

 

You cut some ones tree down and log it and sell back to them, wood stays on site logged

 

20% or can it be done under 5% as a fuel??

[Stephen Blair]

It was labour so 20%, you can make up anything you like but if you get an investigation it may be harder to keep a straight face sitting across from a wee lady with half moon glasses on

[R5log]

My lady had full glasses and was alright!!

 

Tree cut down for the wood?

[Stephen Blair]

If you do it for nothing, process it and sell it to them as firewood then you may be able to, as long as there is no charge for labour

[Billy]

If you do it for nothing, process it and sell it to them as firewood then you may be able to, as long as there is no charge for labour

 

 

But the logs some of us sell are from trees we've been paid to cut...so strictly speaking you could give it a go but I reckon you'd be investigated after a year and it wouldn't be pleasant!

[Stephen Blair]

We are talking about a job where there was no charge for removal Billy, free tree to help yourself too, process it and then charge them for the logs.

[Justme]

Vat on red is 20%

 

 

Under 2500L (I think) it should be 5%.

 

I know when I buy 1000L I only pay at 5%.

[Justme]

I was close its 2300L.

 

Under that & its 5% for all users. Over & commercial pay 20%.

 

This is boiler juices notice.

[Ian C]

I went vat 3 yrs ago, can't see why people make a big issue of it really, pretty much everybody I deal with from my garage to kit suppliers are vat reg so why as a business should I be? When you go vat reg you will realise how expensive second hand kit from non vat firms is compared to brand new!

[GardenKit]

Don't get carried away into thinking you can always claim back VAT on secondhand kit bought from a dealer.

 

Kit that a dealer has bought from a non vat registered customer may well be being sold under the HMRC "margin scheme"

This basically means that the dealer is only accountable for the VAT on the value added to the goods at the point of sale, i.e his profit.

Invoices for items sold on this scheme will not show any Vat and will be clearly marked that the purchaser can claim back no Input Vat on the purchase.

Its worth checking first rather than assuming that every £120 machine will only cost you £100 as in a new purchase, or used machine sold under normal VAT ruling.

 

Sorry if this sounds a little complicated