Got to go VAT registered

[laurenbeautyroo]

Can anyone advise me what they did in my situation which is that I have to be registered to vat. I am just over the threshold. I put my prices up in August so I don't want to do it again until at least August. From what I can tell I need to make another 20% just to stay at same level I am now after I have paid vat. I am really worried!

 

[emsyj]

Do you pay VAT on any of your products or other expenses? You can offset the VAT you pay out against what you need to charge on your sales, so assuming that you buy products you should be able to reduce what you need to pay out to HMRC to an extent.

At the moment, HMRC are doing face to face workshops including one about VAT - if you call them you should be able to find out about local training and advice. Normally the person delivering the workshop will give you their direct phone number for you to ask specific questions and get advice, too. HM Revenue & Customs: Business Education and Support Teams - Southern England

 

[Lifeisalesson]

I'd like the same advice - seems like such a huge loss to be making and my wage bill is over 5k per month now! I'm getting a bit scared about the VAT situation! X

 

[marie111]

Well all I can say is I wish I was doing well enough to be registering for VAT, I wouldnt be worried about it I'd be happy I was earning that much.

 

[JoJo1980]

VAT is the bain of my life.
Nuff Sed.
xx

 

[Rinn]

VAT is the bain of my life.
Nuff Sed.
xx

Same here Jojo....PITA

 

[nkdlady]

As emsyj says, your input VAT will, to a certain extent, offset your output VAT (e.g. before being VAT-registered, you could not reclaim the 20% VAT you pay on your purchases - now you will be able to). So you are not going to just "lose" 20% of your sales. However, the payroll thing is a problem - staffing costs make up such a huge proportion of costs within the beauty industry, and unfortunately, there is no VAT to pay/reclaim on payroll, so you won't be able to offset these costs against your VAT bill. It's not fair, but unfortunately that's the way it works

The only other way to lower your VAT bill is of course to buy more and sell less, but that's not much help is it.

The best advice I have would be to make sure you put aside enough money for your VAT as you go along, else the quarterly payments can be crippling/can cause a real cashflow crisis.

 

[lynn amber]

Can someone remind me what the VAT threshold is £ this year im no where near it but like to know ,is it about 70 k thanks :-D

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[emsyj]

The threshold is £77k at the moment - see the guidance here: HM Revenue & Customs: When to register for UK VAT

There are various schemes that might help the cashflow situation if you contact HMRC for advice - e.g. they will allow monthly payments if that makes things easier for you rather than saving to make quarterly payments.

 

[lynn amber]

Perfect thanks :-D

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[lynn amber]

Think im safe from the vat man as I would have to take in what I take in on my busiest week of the year every week lol

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