HMRC - new to all this!

[Daisy Digits]

Hi, I have only been running my little business for a few months, and am slowly working my way through the mountain of paper work HMRC are sending me. I'm just not sure about the VAT issue. Here it comes, daft question - when I have bought things for my business I have kept every receipt, and written down everything I have been paid, so will I get back the 20% vat that I have paid? Despite trawling through various websites, including HMRC, I'm no wiser! Sorry if this is a long post, but I'm hoping the answer will be here.

 

[squidgernetball]

You only get VAT back when you become VAT registered (massive headache). This is usually when you turnover reaches a certain threshold - about £79,000!

Vicki x

 

[sjsouthern36]

As far as I'm aware you only get the VAT if you are VAT registered. And from what I've been told you can go voluntary VAT registered but it is a utter nightmare. I may not be 100% spot on with this so if someone knows please let us know x

 

[Mobile Manicure]

If you've been paid £100 for your work and paid £20 on your products, you can offset the £20 against what you've earned so you only pay tax on £80.

 

[Daisy Digits]

Oh my life, that's so not going to happen! Rofl! Ah well, at least I'm a legitimate bona fide business, and not worrying about someone from the tax office knocking on my door. Thanks for replying without laughing, I really appreciate your help. :biggrin:

 

[Mobile Manicure]

Just make sure you keep all your receipts. You never know, they can sometimes just do a random check on you.

 

[Daisy Digits]

Thanks ladies, appreciate your comments. Will try and find out about your comment Mobile Manicure, that's a little bit nearer my earning capacity at the moment.

 

[Mobile Manicure]

Thanks ladies, appreciate your comments. Will try and find out about your comment Mobile Manicure, that's a little bit nearer my earning capacity at the moment.

Well if that's all you're going to earn this year you've nothing to worry about. You only start paying tax on anything you've earned (minus products etc. for the business you've purchased) over £9,440. It goes up a bit for the next tax year.

So, if you've earned £9,450, you will only pay tax on the £10. If you've earned £9,430, you pay no tax.

 

[Daisy Digits]

It's a sad fact that for this financial year, the tax office may pay me out of sympathy, lol! Hopefully the next tax year will be a little more lucrative. I'm in it for the long haul, I hope x