Nearly over the vat threshold, what do I do?

[egginyourface]

Good evening all,

I'm nearly over the vat threshold and have a couple of jobs that are definitely pushing me over.

Thing is a lot of it is due to materials. Once I go over do I have to register and pay the vat man?

this is all very new to me, feel like a baby lamb amongst wolves....

what at does everyone else do in this situation?


Thanks all

 

[44ALLAN]

Be a good citizen and graft your arse off and pay your taxes to look after the immigrants who live in 500k houses(given by councils and the government) with at least 7 kids that I pay for with my taxes and work shy ****s who have never worked a day in their lives and plonkies/druggies who get a pay out on a thursday( 40 quid I hear)to feed their addiction.............if a customer offers you cash you need to respond in the negative and say you can't accept it and keep 40% to pay the faceless government **** that wasn't there when you spent 4 hours lifting floorboards and chasing hard concrete walls after your normal 8 hour day...................in short.....................get a good accountant

Sorry all for the spelling...............the swear words were meant

 

[Octopus]

What you need to be aware of is the fact that HMRC can apply the threshold "total" to any 12 months they choose.

I'd get the client to pay for the kit... and avoid VAT registration like the plague.

 

[egginyourface]

44allan: Yes, exactly how I feel. How is the little man supposed to make a living and enjoy life

murdoch: I stumbled on this just now in a other thread. I didn't realise that I may actually be over the thresh hold already!!!

 

[Octopus]

I wish I had a turnover in excess of £79K

 

[44ALLAN]

apart from 1st couple of years whereby showing a loss and claiming back..................good accountant as I said will point you in the right direction to fill his pockets...........oh..did I say that!

 

[Octopus]

apart from 1st couple of years whereby showing a loss and claiming back..................good accountant as I said will point you in the right direction to fill his pockets...........oh..did I say that!

VAT is based on Turn Over, Profit and loss has nothing to do with it.

 

[egginyourface]

So the threshold is £79k? Thought it was £65k

 

[Octopus]

So the threshold is £79k? Thought it was £65k

You are a few years out of date:

HM Revenue & Customs: When to register for UK VAT

 

[44ALLAN]

VAT is based on Turn Over, Profit and loss has nothing to do with it.

Out of date here on the why's and wherefores but was advised years ago to register for Vat by my accountant when I set my first business up then claim it all back.............can't remember the details as I'm an old git but if I'm wrong then I stand to be corrected?

 

[High Tower]

Egg, what is your core business, domestic or commercial, because if you do mainly commercial then you are costing yourself money by not being vat registered !!

 

[MDJ]

Good evening all,

I'm nearly over the vat threshold and have a couple of jobs that are definitely pushing me over.

Thing is a lot of it is due to materials. Once I go over do I have to register and pay the vat man?

this is all very new to me, feel like a baby lamb amongst wolves....

what at does everyone else do in this situation?


Thanks all

Depends on your future business plans IMO, you won,t go far in business if you do not register for VAT, however if you intend to keep yourself small and work only for private customers then you won,t need to register. Just to start a debate here LOL, turning over 80k in a 12 month period is easy IMO, tin hat on haha

 

[egginyourface]

My main customer base is domestic. My 2nd year of trading turn over was just over 50 k. I wasn't even that busy. Can't imagine what it will be in the third year. Will have to have a chat with accountant.

if I go down the vat route I will start losing business, not a good thing

 

[Tommy T]

If your accountant isn't paid from what he saves you get a new one! I had one once, went on holiday last two weeks of Jan. I got fined for late submitance of income so I took the fine money off what I owed them and never went back.

 

[Welchyboy1]

My main customer base is domestic. My 2nd year of trading turn over was just over 50 k. I wasn't even that busy. Can't imagine what it will be in the third year. Will have to have a chat with accountant.

if I go down the vat route I will start losing business, not a good thing

Hi egg

i was in your situation this time last year, my work then was about 60% domestic and i was worried about having to register for vat, but since i have done it i can honestly say i should of done it years ago

your running costs are much cheaper, and it gets rid of some of the more undesirable tighta#%¥ customers

if youve got a good reputation and work on recommendation then people will pay for you and the vat wont really matter that much, its allready on the materials you supply anyway

also if your going to grow your business then vat reg is inevitable and you wont really be considered a proper outfit if you start doing much in the way of commercial work without it

its a bit more paperwork but it depends on your future plans at the end of the day

trying to avoid it will stunt the size of your business, and getting customers to supply materials will A, cause problems with them picking up the wrong stuff for the job or cheap toot or forgetting alltogether, and B will remove the earning oppotunity from your self by applying a mark up to your materials

its not as bad as you think mate honest! I prefer it!