Originally posted by ASB
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Lots Of Questions From VAT man
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That's right. You don't have to charge VAT in order to reclaim it, if you provide zero-rated goods and services.
There is no great rush to get VAT registered, as far as I can make out. If you have some up-front costs (as outlined previously) then it is better to reclaim the VAT on these when you first register, having traded for a while without charging VAT (below threshold). Depending on how much you buy versus how much you can keep back on the flat rate scheme, then you should do better this way. When you've lower outgoings (set up costs) then register for VAT and go for flat rate, which means you keep a percentage of the output tax but cannot reclaim any input tax.
So what's the rush ?It's my opinion and I'm entitled to it. www.areyoupopular.mobiComment
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Originally posted by expatNo, I was just referring to the usual case. True you can have one without the other, but only if you are a business. If you're not, I don't see how you can reclaim any VAT.
You can only register for VAT if you in business. Do you mean limited company?It's my opinion and I'm entitled to it. www.areyoupopular.mobiComment
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I recon it will take 8 months to hit the threashold, if I'm not regsitered for VAT during the time, once I hit the threashold will I have to back date it to cover the last eight month I didnt charge it ?Comment
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Originally posted by oraclesmithYou can only register for VAT if you in business. Do you mean limited company?Comment
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Originally posted by expatIf you like. What I mean is that I don't understand, when you said HMRC were concerned to prevent private individuals from reclaiming VAT on consumer goods, how that reclaiming would work.It's my opinion and I'm entitled to it. www.areyoupopular.mobiComment
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Originally posted by Ivor1I recon it will take 8 months to hit the threashold, if I'm not regsitered for VAT during the time, once I hit the threashold will I have to back date it to cover the last eight month I didnt charge it ?
You are only collecting VAT on behalf of Her Majesty's Revenue and Customs. They do not require you to collect the VAT until your turnover has reached the correct levels (there are some exceptions, which shouldn't apply). You can, however, on registration reclaim VAT on goods and services which you have bought already. 3 years goods, one year services.
If you haven't been trading, you don't need to worry about VAT registration or VAT invoicing for a while unless you haven't got any start up costs in which case the VAT flat rate scheme from day one should be better for you. You should make sure you start collecting VAT receipts.It's my opinion and I'm entitled to it. www.areyoupopular.mobiComment
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They messed me about a bit when I was registering in July. My accountant created an invoice for me that showed his fees for the next twelve months. I also sent them a letter from the bank thanking me for setting up a business bank account with them. I followed this up with a phone call and that did the trick.Comment
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Originally posted by BillHicksRIPThey messed me about a bit when I was registering in July. My accountant created an invoice for me that showed his fees for the next twelve months. I also sent them a letter from the bank thanking me for setting up a business bank account with them. I followed this up with a phone call and that did the trick.Comment
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