vat

[luckybird21]

i vagley (sp) remember when i did business studies and when i worked in accounts that you only pay vat when your comapny bring in a certain amount of money, is it £30000, or more i think it was around that mark but may have changed. I seem to have lost a million brain cells since i worked in accounts!

is this true?

Im only part time, and only have a few clients, which i will probably always keep as a few clients as i have another job and a 2 year old. I just wanted to know as i want to do everything right and i don't want a big old fine!

i've done comapnies house, car insurance, etc, i know how to keep books and have accounting office lined up.

please. please,please help!!!!

 

[Carole Lindsay]

Hi Sarah: i've just had a look at the Business Link site and i think the figure is even higher than £30,000. Have a look at see what you think but i dont think you have a problem.

http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&topicId=1073858808

 

[perfect10]

Hi Sarah,

It's £56,000 before you have to register for VAT. I can but dream of making that much!!

Ali x

 

[luckybird21]

thanks, i ment to put a 5 not a 3, i really don't know where my brain is today!


cheers for the help you guys!

 

[Deb379]

I believe it's over 54K


Deb379

 

[Sassy Hassy]

You can register for vat even if your income is below the threshold if it is advantageous to yor business (ie you are in a business that supplies to other's that are vat reg'd so it makes you more competitive cos they can reclaim the vat back) however once you hit the threshold (about £56K) you have no choice and HAVE TO! Now wouldn't it be nice to be in that situation!

 

[Little Angel]

Hi

The downside for registering for vat is that you also have to pay the vat man for your services so imagine £30 for a set of nails - the vat mans share.
Bloody rip off he is!!

 

[Deb379]

No actually it's a pain, i have 2 companies both VAT registered nothing to do with nails. I have 8 VAT returns to do each year! You have to be disciplined to put the money you owe the VAT man to one side, the only nice time is when he has to pay you for VAT you've claimed on purchases! The down side is if you have spent some of that money you owe him, getting the returns in on time, the amount of VAT we have to pay them for our earnings and if they pay you a visit! You get penalised for working hard and earning! Better off being a gypsy

Anyway I think you will find out more info if you need to on their website.


Deb379

 

[Tickled Pink!]

naughty me - i'd better register with the VAT man tomorrow - NOT!!! Oh to be in the position of earning that much...one day though... :lol:

 

[bimbogeri]

Am I right in thinking that you can claim back VAT you've spent on purchases even if you don't earn enough to PAY VAT? Or do you only get to claim back if you're paying?
So all those nasty extra 17.5%s that get added on at the checkout when you're buying nail goodies you can get back at the end of the year?
Geh... I always hated maths...
Lol x

 

[perfect10kb]

Yes if you are vat registered you can claim back all the vat on your purchases BUT you will also have to pay them vat on your sales . For the Nail Tech unless you have some HUGE purchases you will always have to send him a check every three months (the difference between what you are claiming and what you have to pay ).


For example .

Sales for 3 months £1950 (£150 per week ) vat due to vat man £290.43
Costs for 3 months £1000 (includingvat ) vat to reclaim £148.93

Amount in this case you must SEND to the vat man £141.50


Unless you ,like myself are a distributor or similar and have lots of costs to reclaim on .I.E Show costs ect it is really not worth getting vat registered on a voluntary basis . Unless ,as has been said you reach the level at which you must register for vat. Off the top of my head it is something like £54,000.


I would like to meet the self employed tech that earns this much!!!!!!..
Boy must she (or he ) have loads of clients and work even longer hours than the rest of us .lol


Karen
Light Elegance UK