Originally posted by oilboil
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Is VAT punitive for threshold contractors?
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Originally posted by TheCyclingProgrammer View PostThis is not correct. You become liable to account for VAT on your sales as of your registration date - it's not backdated unless you ask for it to be backdated or were late in registering for some reason. Only if you have issued invoices over past your registration date would you need to re-issue VAT invoices. And it's a rolling annual threshold too.
He's certainly racking them up today.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by TheCyclingProgrammer View PostThis is not correct. You become liable to account for VAT on your sales as of your registration date - it's not backdated unless you ask for it to be backdated or were late in registering for some reason. Only if you have issued invoices over past your registration date would you need to re-issue VAT invoices. And it's a rolling annual threshold too.Comment
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Originally posted by gables View PostUmm, haven't I already said this? TBH I like it when I'm correctComment
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VAT is literally the most straightforward part of the accounting, financial and tax side of being a contractor in this market. It astonishes me that you can get to the stage of operating a limited company and have no idea whatsoever how VAT works.
In fact, it astonishes me you can get to working in a professional career, even if you had always been a permie but obviously *have paid VAT yourself in your personal life* without understanding how it works better than your OP demonstrates.
You've already been given the pointers, but truly - you are very well advised to spend significant time reading up not only on VAT but on all other tax-related aspects of running your company.Comment
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Don't forget the potential you can reclaim VAT on your first VAT return even.
There’s a time limit for backdating claims for VAT paid before registration. From your date of registration the time limit is:
•4 years for goods you still have, or that were used to make other goods you still have
•6 months for services
You can only reclaim VAT on purchases for the business now registered for VAT. They must relate to your ‘business purpose’. This means they must relate to VAT taxable goods or services that you supply.
you may be able to claim back the VAT on certain asset purchases with a VAT-inclusive price of £2,000 or more.Comment
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Originally posted by Jeremiah@RHJAccountants View Postyou may be able to claim back the VAT on certain asset purchases with a VAT-inclusive price of £2,000 or more.Comment
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Originally posted by MrButton View PostWhy does it have to be over £2k?
https://www.gov.uk/vat-flat-rate-scheme
•you can’t reclaim the VAT on your purchases - except for certain capital assets over £2,000'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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