going vat registered

[Richard 1234]

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!

 

 

It's capital expenditure you can claim back I think (trucks trailers saws etc etc) not fuel materials etc

[Gray git]

Prep most of your records yourself which you should be doing anyway as it makes your end of year tax calculations easier and let's you know how your business is doing, submit this to your accountant who will process it and submit on your behalf, shouldn't take them long tops 2 hrs @£25 ph mine charges isn't realy that much.

Add ed benefit of a good accountant doing it for you is being able to pay them a couple of hundred a year insurance so should you get an tax or vat inspection they deal with it and fight your case as it's also defending them.

[Ghettoblaster]

Just make sure you do EVERYTHING by the book! We are about 3 weeks into a vat inspection and they are merciless and in some situations it can be a minefield knowing what you can and can't claim! Make sure you have a good accountant and do all your cis etc. properly.

Good luck

[Stephen Blair]

My Vat inspection took about an hour, we had everything labelled and set out neatly.

The first time I did it I got 6 months fuel vat back and 3 years on assets, last time I did a few years ago it was 4 years with no fuel.

[Jon Heuch]

I don't see the point or really understand fully the flat rate scheme, but it seems to me theres no guarantee you are going to be better off with it from one month to the next.

 

It's an individual business decision, depending on your cost structure - you could be better off, you could be worse off. The beauty of it, once HMRC have accepted your chosen rate, is that there is certainty over what you are paying: the amount you pay HMRC is just a percentage of turnover. You don't have to add up all your receipts, worry about whether they show VAT or not.

 

I am not sure what receipts you do need to show/keep but it does make calculations much simpler.

 

And remember you can pay on a cash basis rather than an accruals basis - so if you have any regular late payers you are not paying the tax man before collecting money from your customers.

[Ghettoblaster]

My Vat inspection took about an hour, we had everything labelled and set out neatly.

 

The business is not Arb related and falls into a very unique and strange vat situation. All books are in order but they are looking into EVERY sub-contractor we have used in 3.5 years trading!

It will all be fine and in order but when they see anything that is a bit unusual the go after it like a pack of dogs.

 

For a straight forward setup it should not be too much bother, still just be squeaky clean!

[Jon Heuch]

.....and of course if you do have a lot of capital expenditure with the potential to claim back VAT the rate that HMRC will accept for you for the flat rate scheme may mean it is not for you. The difficulty is that you have to choose a rate (based on a list they provide) and they may only query your choice of flat rate during an inspection.......but why would they need to inspect you if you are paying on the flat rate?.....all they need to do is make sure you have all your invoices include VAT and you are not missing out any cash receipts.

[Ghettoblaster]

We are not on flat rate.

[nailer]

I had to come off the flat rate and like Ben said it works out about the same. 2 subcontractors I use then went on the flat rate. They charge me 20% more, which I claim back and they only have to pay back 10%. If you're a subby that only works for non-flat rate vat registered firms then going vat reg flat rate yourself is a good option.

[treevolution]

When writing quotes is it better to put the price inclusive of VAT or price plus VAT for domestic customers.