Vat killing me!

[njm]

VAT separation would be the correct term and illegal if, as treequip mentions, the business is fundamentally selling the same products/services, using the same tools or equipment, staff or vehicles. It can be correctly apportioned but let's be honest, most people do it as a tax dodge and at some point you'll get caught up. Why risk it - if you are about the VAT threshold then you have to collect VAT.

 

One of my competitors has operated like this for over 10 years , makes it difficult as he charges 20% less when it suits !

[AA Teccie (Paul)]

You don't have to display vat on your quotation only on an invoice right? which is what i have done, trouble is when they ask you either on site or the phone if it includes vat thats when i find i am buggered.

 

Sure others will have replied here but didn't have time to check.

 

I believe you have to say, for instance £250 +VAT, as a minimum on a quote so the customer knows and on the invoice state both the net and gross amounts, i.e. ex VAT & +VAT and the rate as applicable, e.g. 20% for services / 5% for fuel and logs (I think)

 

Check this with your accountant.

 

Cheers,

Paul

[richy_B]

I believe the law is that you have to quote 'domestic' / personal customer the full price in the first instance but do not with business to business transactions. Ie Joe Bloggs ask for quote to cut his hedge - you must legally quote him £50 (which already includes VAT but doesn't separate it from the price) or specifically state £50+VAT at 20%. It is illegal to quote £50 then add the VAT on at a later stage. If Joe bloggs LTd ask for a quote you can just write £50 then invoice £50 +VAT.

 

If you are collecting VAT you need to display your VAT number but interestingly you do not have to provide a VAT receipt (with gross and net) as standard, only on request. You can just provide a basic receipt as long as it shows your VAT number. People often don't believe this but if you look at your receipt from a supermarket etc you will not often see a VAT break down. Technically a normal shop receipt like these cannot be used as a VAT receipt for VAT reclaim.

 

Best practise in every case would be to include the price with a breakdown on everything.

[hamdogg]

I believe the law is that you have to quote 'domestic' / personal customer the full price in the first instance but do not with business to business transactions. Ie Joe Bloggs ask for quote to cut his hedge - you must legally quote him £50 (which already includes VAT but doesn't separate it from the price) or specifically state £50+VAT at 20%. It is illegal to quote £50 then add the VAT on at a later stage. If Joe bloggs LTd ask for a quote you can just write £50 then invoice £50 +VAT.

 

If you are collecting VAT you need to display your VAT number but interestingly you do not have to provide a VAT receipt (with gross and net) as standard, only on request. You can just provide a basic receipt as long as it shows your VAT number. People often don't believe this but if you look at your receipt from a supermarket etc you will not often see a VAT break down. Technically a normal shop receipt like these cannot be used as a VAT receipt for VAT reclaim.

 

Best practise in every case would be to include the price with a breakdown on everything.

 

 

Well explained [emoji106]🏻

[Tree:Tment]

This is something i am afraid of. VAT!

 

I have managed to turnover just under 50k the first 2 months of my new tax year. which means if i keep going this way i will be vat reg. I have nightmares of driving around doing quotes all day and not winning any work due to the extra costs & i don't want to become that guy who just thinks about money all the time!

 

I might need t take the rest of the year off work just to stay under the vat threshold.

[richy_B]

When you get to £80k then panic. You never know what's round the corner so keep on grafting in the meantime.

[Wolfie]

This is something i am afraid of. VAT!

 

 

 

I have managed to turnover just under 50k the first 2 months of my new tax year. which means if i keep going this way i will be vat reg. I have nightmares of driving around doing quotes all day and not winning any work due to the extra costs & i don't want to become that guy who just thinks about money all the time!

 

 

 

I might need t take the rest of the year off work just to stay under the vat threshold.

 

 

The VAT threshold is based on a rolling 12 month basis so if you turned over more than 33k in the last 10 months of the previous financial year then you are already over the threshold.

[timbernut]

I had to go VAT reg retrospectively (18 mths) 1k fine and had to find 16k fast. Fortunately I had done a lot of work for a big estate and a couple of larger organisations who I had a good relationship with and went back through invoices with them but I was left with 6k of VAT from log sales and private work so I paid that from money meant for income tax with the intention of taxing myself double for the next year. Then had double prolapsed discs in back (dosed up on morphine on floor for 6mths until op) and guys who sub for me held it together til I was functional again. Took along time to get out of the hole and it showed me how not bein on top of paperwork can **** you up! There was an initial slump in domestic work with having to add VAT but a few years on its picked up again and it has its advantages.

 

 

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[Tree Tastic Care]

I don't think I'll ever have to worry about got vat registered. Struggling to make 10k ! Lot of big and little fish round here . I keep plodding on tho ☺

 

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[dan494]

I don't think I'll ever have to worry about got vat registered. Struggling to make 10k ! Lot of big and little fish round here . I keep plodding on tho ☺

 

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If you're only bringing in £200 a week it's time to get a job!!

 

 

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