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Post by quaysider on Jan 12, 2018 18:41:10 GMT
Before I go searching for an accountant in the real world, I just wondered if we had any here - or folk in business who know about Vat?
I ask, because although we don't have to register for vat, I've read on the hmrc website that if we do, we can claim back vat for 4 years prior to the start of the business.
In my case, that would mean a reclaim of about 14ks worth of receipts I've got from boat build etc.
I have 2 questions.... 1 being is there a limit to the amount... ie, some kind of ratio to turnover etc? and 2, presumably it's possible to "de-register" at some point and if so, how long does one have to wait before doing so and would I have to repay the vat reclaim on doing so?
I'm not being tight - we just don't have much spare money kicking around ... STILL lol.
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Post by Stumpy on Jan 12, 2018 18:55:56 GMT
You'll need to register for VAT if you are going to go over the £82,500 pa threshold on your business.
If you think the business earnings are going to exceed this amount earlier on, then the sooner you register the better.
Believe me when I tell you it is a very steep learning curve when you have your own business, and I would thoroughly recommend, getting in contact with an accountant, or a good book keeper to give you sound advice.
You'll be going to need one when when you do your annual accounts anyway.
Have you registered the business with Company House yet ?
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Post by quaysider on Jan 12, 2018 19:05:36 GMT
You'll need to register for VAT if you are going to go over the £82,500 pa threshold on your business. If you think the business earnings are going to exceed this amount earlier on, then the sooner you register the better. Believe me when I tell you it is a very steep learning curve when you have your own business, and I would thoroughly recommend, getting in contact with an accountant, or a good book keeper to give you sound advice. You'll be going to need one when when you do your annual accounts anyway. Have you registered the business with Company House yet ? not yet - I got my government gateway id sorted in prep though. turnover wise, we'll be nowhere near the compulsary threshold but i understand we can register voluntarily - and whilst it will mean 'losing' 20% of our income, given that will be quite low for a while, it will take a long time to exceed the 14k i can claim back if you follow |
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Post by quaysider on Jan 12, 2018 19:06:47 GMT
The British Government has loads of dosh for 'Overseas Aid' so get what you can out of them. It is worth asking the Tax Office direct - I have done so in the past, and my thingies dealt with in a no-nonsense style, as they should have been. How about looking at an accountants discussion forum? That sort of thing may exist. I might try a phone call to see if I can speak to real person rather than trying the online faqs... they send you round and round in circles. I'll get googling accountants forums. |
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Post by Stumpy on Jan 12, 2018 19:14:40 GMT
You'll need to register for VAT if you are going to go over the £82,500 pa threshold on your business. If you think the business earnings are going to exceed this amount earlier on, then the sooner you register the better. Believe me when I tell you it is a very steep learning curve when you have your own business, and I would thoroughly recommend, getting in contact with an accountant, or a good book keeper to give you sound advice. You'll be going to need one when when you do your annual accounts anyway. Have you registered the business with Company House yet ? not yet - I got my government gateway id sorted in prep though. turnover wise, we'll be nowhere near the compulsary threshold but i understand we can register voluntarily - and whilst it will mean 'losing' 20% of our income, given that will be quite low for a while, it will take a long time to exceed the 14k i can claim back if you follow That's one of the minefields. Personally, I wouldn't register yet. But throw every receipt you've got for the business at the tax man (including the boat one), as this is a business asset. I do believe it's not 14k you can claim back, it's more like 14k you don't pay tax on. |
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Post by Mr Stabby on Jan 12, 2018 19:16:04 GMT
You'll need to register for VAT if you are going to go over the £82,500 pa threshold on your business. If you think the business earnings are going to exceed this amount earlier on, then the sooner you register the better. Believe me when I tell you it is a very steep learning curve when you have your own business, and I would thoroughly recommend, getting in contact with an accountant, or a good book keeper to give you sound advice. You'll be going to need one when when you do your annual accounts anyway. Have you registered the business with Company House yet ? not yet - I got my government gateway id sorted in prep though. turnover wise, we'll be nowhere near the compulsary threshold but i understand we can register voluntarily - and whilst it will mean 'losing' 20% of our income, given that will be quite low for a while, it will take a long time to exceed the 14k i can claim back if you follow Can't really offer any advice in your particular scenario- I have been VAT registered in the past but because I ran a business which exceeded the turnover. I think what you are talking about is the Flat Rate VAT Scheme and Googling that would probably be a good starting point. |
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Post by quaysider on Jan 12, 2018 21:07:17 GMT
not yet - I got my government gateway id sorted in prep though. turnover wise, we'll be nowhere near the compulsary threshold but i understand we can register voluntarily - and whilst it will mean 'losing' 20% of our income, given that will be quite low for a while, it will take a long time to exceed the 14k i can claim back if you follow Can't really offer any advice in your particular scenario- I have been VAT registered in the past but because I ran a business which exceeded the turnover. I think what you are talking about is the Flat Rate VAT Scheme and Googling that would probably be a good starting point. If I could read Swahili, that would make sense I'm sure  |
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Post by lollygagger on Jan 12, 2018 21:45:09 GMT
I'd avoid it. You have a 20% advantage over any vat registered competition. You would be volunteering to tax your customers 20% and collecting it for the Inland Revenue. Rather than that charge 10% more than you were going to and pocket that instead of claiming back.
Won't your company have to own the boat to claim vat back on it's build?
It makes sense to register if your customers are vat registered as they can claim it back.
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Post by phil70 on Jan 12, 2018 23:26:18 GMT
Having been VAT registered in the past I would advise speaking to the VAT man directly.
In the past they have been more than helpful and have been charming to talk to plus they will gladly send you any number of leaflets for your reference , they are there to assist you in collecting tax for them and so lean over backwards to help.
Phil
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Post by thebfg on Jan 12, 2018 23:33:18 GMT
Now I'm no accountant. But yiur worried about handing over 20 percent of your income.
Wouldent you price your service to account for it.
And importantly wouldent you be able to claim back vat yourself on things yiu buy fir the business such as fuel, Food, phone and any other running costs.
That would be a big hit on the 20% you hand over and make the 14k you reclaim go further.
I realise it's complicated and you can't claim on everything but is there any sense to it.
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Post by Deleted on Jan 13, 2018 0:27:16 GMT
As I said last night......
Pontificating 'experts'
I'd just ring the tax office....
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Post by lollygagger on Jan 13, 2018 9:51:14 GMT
As I said last night...... Pontificating 'experts' I'd just ring the tax office.... Nobody is claiming to be expert. We were asked to pontificate. Yes you probably would, so what? |
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Post by quaysider on Jan 13, 2018 10:01:05 GMT
As it happens, another boat hotelier has contacted me to say "hello" - and offer help if required... I'll ask him and see what he thinks.
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Post by peterboat on Jan 13, 2018 10:04:30 GMT
We had our own business for 18 years and made sure we never reached the VAT threshold, get yourselves a good accountant they are worth their weight in gold honestly. Now it was talked about that the VAT threshold is going to go down figures as low as 20K were talked about so in the end you might not have a choice, but as I say talk to an expert not the tax man as he is on the other side of the fence to you
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Post by Deleted on Jan 13, 2018 10:49:54 GMT
As I said last night...... Pontificating 'experts' I'd just ring the tax office.... I disagree - ringing the tax office is a phone call, and although it's one route, when you make phone calls you need to have a list to hand of what you want to say and ask. The person at the other end might not have the time for you, or be in a bad mood, or could be some 'foreigner' who doesn't speak English well and couldn't give a fuck about some white English person wanting to sort his tax affairs out. Phone calls are done in real time and you can muck it all up. It's easier to see a person face to face, and with written correspondence more time to take it all in. I generally find they are very helpful, and given it is over the phone they actually have no idea what colour I am so quite what that has to do with the price of fish I have no idea. |
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