Sorry for the noob question, but I'm an Aussie and therefore stupid. I don't really understand how VAT works. I've had my limited company 2 years. Haven't registered for VAT yet I've had over 90K going into my company account annually. I'm closing down company and heading home, SJD have said make a deal with the VAT man. How do they calculate how much VAT u owe them. Is it a simple % of profits?
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Question is does the VAT man know about your company (as you've not registered for VAT)? They would if they audited your agency(s) and saw invoices from your company. The other question is if you tell Company's House that your company is now dormant would the VAT man come knocking on your door down under? I think I'd get on a plane and take a chance!"Hope your doing fine". My favourite opening line in emails from certain agencies! Not only the fact they can't spell, but who actually says that? -
Well i tried to register, but to cut a very long story short, the registration process has taken almost 8 months. It took so long that I am about to leave and still not registered. I think they know of my company because I attempted to register, but they needed more info etc etc. But if I were to leave without paying any VAT wouldn't I have some big fine/jail sentence waiting for me if I came back in a couple of yearsOriginally posted by andygComment
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Snag is, once you go over £64k turnover in a year you have to be registered for VAT, not doing so is a criminal offence. Going home won't help, there are reciprocal taxation agreements in place, and you won't be able to close your company off until HMRC have agreed to it, which they won't.
You have a major problem, I suggest you get qualified advice now. However, assuming you would have been on the flat rate scheme, the best you can hope for is that you owe them 13% of your gross turnover, but they are more likely to say it's 17.5% - so call it £32k...Blog? What blog...?
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If you haven't been collecting VAT you can't pay it to them.If you have been collecting VAT....
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Why would you face jail/fine? You've made every effort to register your company for VAT. A colleague of mine works under the 'flat rate scheme' see this link and it also gives a calculator for working out how much VAt is due. http://customs.hmrc.gov.uk/channelsP...HMCE_CL_001208
So you could bung the VAT due into an account and leave it until the VAT man comes knocking, so you'll earn interest, and wait until the time runs out that the vat man can't touch you any more (7 years I think)."Hope your doing fine". My favourite opening line in emails from certain agencies! Not only the fact they can't spell, but who actually says that?Comment
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Ardesco makes a good point there. If you aren't registered for VAT you can't have been adding VAT to your invoices. Therefore, do you owe the vat man any money?"Hope your doing fine". My favourite opening line in emails from certain agencies! Not only the fact they can't spell, but who actually says that?Comment
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Yes you do. You have to pay it, it's a legal requirement. It's not their problem if you haven't been collecting it first. Bascially the OP owes the taxman £30k-odd and won't be allowed to close his company until it's paid off.Originally posted by andyg
He's also been trading two years and waiting 8 months for registration. Foot youself the in shot, IMHO...Blog? What blog...?Comment
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I don't suppose he can get his VAT cert and then invoice all his old clients for the VAT portion of his old invoices?Originally posted by malvolioComment
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Apologies in advance to malvolio as this is a stupid question - but...Originally posted by malvolio
you cant collect VAT without a vat number? hes been trying to registar for 8 months, not waiting?Comment
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