VAT help

[diditrain]

If someone ask`s for a VAT receipt from you but you are not vat registered, do you simply say that you are not VAT registered?

 

[Top Cat]

Yes but you can give a receipt without the vat content on it.

 

[tazz]

If you are not VAT registered, you can not claim vat from a customer nor state that vat is included

 

[Darkwood]

This be the Dilemma when working with a VAT registered business if you are not VAT registered... When you are VAT registered you are required to pass on the VAT on the goods and also charge VAT on your labour , once you submit your invoice you must show your VAT registration No' on the invoice - this allows the company to claim back the VAT on the invoice.

Example ... as a non registered contractor -
Material £100 inc
Labour £100 no VAT added - the VAT registered business you have done work for will lose out not been able to reclaim VAT back on the materials.

If materials cost are low and labour high it shouldn't be a big issue but expect to lose this firm as a regular as they lose money just employing you... im VAT registered from day 1 of starting my business because my customer base is all VAT registered ...now if i was to go into domestic work i couldn't compete with unregistered joe blogs on labour heavy jobs because i would have to apply VAT where he dosn't.

Plus as above Tazz point out if you are not VAT registered you cannot apply it on labour nor show it as part of your materials (although its still inc on goods) ... you will pay for your goods inc VAT which you pass the inclusive cost on with your margin on top. My invoices are broken down into excluding and including VAT for ease of interpretation by my customers accountants ....

Im shocked your been asked for this info surely an accountant should know a bill not showing both the registration no' or VAT breakdown is from a company who isn't registered.

 

[telectrix]

if i do work for a vat registered business and the materials cost is a major part of the job, i sometimes get the client invoiced for materials direct and let them pay for them. obviously, this means i get no mark up, but on the other side, i don't have to stand the cost if client is a bit slow in paying.

 

[Darkwood]

A good point made Tel ..... as im registered its an option that hasn't crossed my mind although can be tricky sorting out your excellent competitive discounts invoiced direct to another company ..you need to know your wholesalers well, and your client may find this more hassle than its worth as oppose to just employing a VAT registered firm.

 

[diditrain]

Thank`s for clearing that up. Much appreciated.

 

[Paultrim123321]

There is a threshold with which your business must earn a minimum of £60k per annum I believe tho I'm sure someone will correct me, to become VAT registered, or it might be at that figure its compulsory.
As has been previous stated, your accountant should be familiar with the VAT requirements for business and rules and guidelines etc.

 

[monkeyelectric]

There is a threshold with which your business must earn a minimum of £60k per annum I believe tho I'm sure someone will correct me, to become VAT registered, or it might be at that figure its compulsory.
As has been previous stated, your accountant should be familiar with the VAT requirements for business and rules and guidelines etc.

Its £79,000 turnover now before its compulsory to register for vat or you can register voluntarily

 

[Paultrim123321]

(null)

Cheers Monkey, that's gone up then from what I remember.