Vat Registering

[Chorlton]

Well, for the replies all. Looks like this has turned in to a matter of opinion/ trading status.

The bottom line is, would i be able to provide competative prices and be financially better off?

if more than 50% + of your customers are vat registered then yes.

[j.paul]

Well, for the replies all. Looks like this has turned in to a matter of opinion/ trading status.

The bottom line is, would i be able to provide competative prices and be financially better off?

More info: http://www.hmrc.gov.uk/vat/index.htm

[SUBS]

Definitly speak to an accountant.

Ask about "cash accounting" for VAT.

Means you only have to pay customs the VAT money you have actually received, not the amount you have invoiced for. Apart from the better cashflow for you, could be a life saver if someone goes bust on you.

My advice, for what its worth.

If your mostly just supplyg labour as a subbie, and not spending much on materials.

Have a look at your last few months invoices & receipts, see how much better of you would have been if you could claim the VAT back on petrol and materials etc. then ask yorself how much extra hassle it is to do more detailed books, deal with the vat inspections etc. and how much extra your accountant is going to rip you off....sorry, charge you for the extra work.

then tell em you dont want to join !

[leesutton]

At the end of the day you dont have a choice.... if your expected annual turnover is going to be over 61,000 then you have to be registered. Contact the vat and they will send you the forms.

Hope this helps.

lee

[SUBS]

At the end of the day you dont have a choice.... if your expected annual turnover is going to be over 61,000 then you have to be registered. Contact the vat and they will send you the forms.

Hope this helps.

lee

Absolutely, but IMO, unless theres an actual advantage theres no point in volounteering till you really have to, I made that mistake myself.

Although it does give you a little bit more credibility.

Its easy to Join, but not easy to leave.

[Guest anguscanplay]

At the end of the day you dont have a choice.... if your expected annual turnover is going to be over 61,000 then you have to be registered. Contact the vat and they will send you the forms.

Hope this helps.

lee

67K

[esp-protocol]

hope not, I think your mixing CIS and VAT

Yep think your right....... We don't come under then CIS scheme and i got mucking fuddled......!

[justin]

Yes you will have no choice if your over the threshold. But it has it's good and bad points.

It's the admin side we have found to be the biggest negetive. You'll find your accountant bills will increase as there is alot more work involved.

Larger jobs and contracts not a problem although nobody gains, does make you look a bit more credible.

Also before we were registerd the client would know that we were having to pay VAT on the goods anyway, which meant in effect, he was paying this hidden in the total price and not being able to claim anything back themselves.

It's in the domestic arena that we will now find a drop as a 17.5% increase will make us less competitive with unregisterd firms.

Personally I am not concerned as this is not my prefered route to drive the company. We generally make more money with less hassle subcontracting.

[darrenlea]

If you can charge your customers VAT register for VAT - you can claim all your VAT expenditure back and it isn't that hard to work out the balance payable to the VAT man at the end of each quarter - they may even owe you. But its important to operate the VAT scheme properley or they'll fine you.

[Guest anguscanplay]

you`ll also end up paying more income tax ........