Reply to: Single supplier to procur equipment over £2000

[darmstadt]

Desk, chair, computer, and monitor to name the biggest. Part of the problem is that I'm very specific on requirements for each.

Bechtle do all of that: https://shop.bechtle.de/de Maybe there's a UK equivalent

[TheCyclingProgrammer]

Maybe there's a plan B here for doing with invoices same as what we can do with divvies. Accumulate throughout the year and roll into one official document for accounting purposes at year end.

So companies on FRS buy via a supplier and gets an annual invoice. I guess similar to what many suppliers do when offering payment on account terms, though usually 30-90 days not 365.

Still sounds like multiple purchases to me (note that HMRCs VAT notice makes no mention of it needing to be a single invoice, it needs to be a single PURCHASE).

[northernladuk]

Oh dear oh dear.....

[Hobosapien]

Maybe there's a plan B here for doing with invoices same as what we can do with divvies. Accumulate throughout the year and roll into one official document for accounting purposes at year end.

So companies on FRS buy via a supplier and gets an annual invoice. I guess similar to what many suppliers do when offering payment on account terms, though usually 30-90 days not 365.

[bobspud]

Hi all,
I have just started my own Ltd company as a contractor. I am trying purchase several large items that will qualify as capital assets. I'm registered to use the Flat Rate VAT scheme, so it's advantageous for my purchase to be over £2000. Problem is, I can't find a single supplier for everything, such that no single receipt will be over £2000.
How have people been able to avoid this problem in the past? Do companies exist to purchase any product you specify and then sell them on? Would this violate some other regulation in not aware of?
Looking forward to your thoughts.

Its probably not worth the effort to do what you are trying to do. I like high end kit and even with this in mind the Vat for all the stuff that could be legitimately claimed in my office would be less than the margin we make on the FRS scheme in any given year.

[Hobosapien]

You've got to be careful with Amazon as it's likely you'll get items from multiple suppliers so a number of different invoices with different VAT numbers which does not meet the requirements. Has to be one invoice/VAT number. A market place offering products from a number of suppliers is not the same as buying from one supplier on one invoice.

Yep. You're right. Just checked my recent Amazon orders and they say I need to request the actual invoice from the marketplace seller, Amazon only supply the sales order info.

Orders with a mixture of 100% Amazon, marketplace 3rd party but fulfilled by Amazon (i.e. stocked and shipped from an Amazon warehouse), or fullfilled by marketplace 3rd party directly, results in only the 100% Amazon items being accessible via the invoice Amazon provides online. The other two routes require contacting the 3rd party for the invoice.

Oh well, another idea that was pie in the sky.

[Eirikur]

Argos
John Lewis
Amazon (as long as you buy form one amazon supplier)

[northernladuk]

For a one stop shop isn't that what Amazon are taking over the world with?

Even if the items you want are via several suppliers on the Amazon marketplace, I think you'd be ok putting in one Amazon order so one Amazon invoice for VAT purposes.

Often separate entities are suppliers on Amazon too so can often get same or similar deals, especially if qualifies for free delivery due to being fulfilled by Amazon.

I suppose eBay is another one.

Depends how their prices minus the VAT refund compare to the other separate sources where you won't be able to reclaim the VAT.

(To get around the buying process, paying Amazon from personal account rather than having a corporate one, you can transfer the cost of the purchase to your company as an expense and still reclaim the VAT)

You've got to be careful with Amazon as it's likely you'll get items from multiple suppliers so a number of different invoices with different VAT numbers which does not meet the requirements. Has to be one invoice/VAT number. A market place offering products from a number of suppliers is not the same as buying from one supplier on one invoice.

[Hobosapien]

For a one stop shop isn't that what Amazon are taking over the world with?

Even if the items you want are via several suppliers on the Amazon marketplace, I think you'd be ok putting in one Amazon order so one Amazon invoice for VAT purposes.

Often separate entities are suppliers on Amazon too so can often get same or similar deals, especially if qualifies for free delivery due to being fulfilled by Amazon.

I suppose eBay is another one.

Depends how their prices minus the VAT refund compare to the other separate sources where you won't be able to reclaim the VAT.

(To get around the buying process, paying Amazon from personal account rather than having a corporate one, you can transfer the cost of the purchase to your company as an expense and still reclaim the VAT)

[MrMarkyMark]

You still get the 20 % off your corporation tax, so don't worry about it. Chairs are 50 quid.

Unless he was after one of these...

[PerfectStorm]

You still get the 20 % off your corporation tax, so don't worry about it. Chairs are 50 quid.

[Ajbaker]

Thank you all for your comments. Seems like I'm out of luck however, and will simply have to pay the VAT.
pr1s advice not to register for flat rate scheme until large purchases have been made is great advice. And it seems really obvious, now. Though sadly a little late for me, and I'm not sure I could have afforded this purchase before starting anyhow.

[Bozwell]

If you've just started up then your mistake is joining the FRS too early - you should register for VAT, buy everything, claim the VAT back then join the FRS to start billing

When I first started up my Accountant specifically asked if I had any equipment purchases to make before signing up to flat rate. Unfortunately I wasn't in a position to buy my Computers at the time. I would have thought that most of the big IT equipment suppliers could get anything you want if you call and ask even if it isn't currently on their website, although not necessarily at the price you would want to pay.

I eventually made an order from one supplier for most of what I wanted which came to over £2000, and then bought a few separate items elsewhere because even with VAT added they were still cheaper.

[mudskipper]

If you've just started up then your mistake is joining the FRS too early - you should register for VAT, buy everything, claim the VAT back then join the FRS to start billing

You don't even need to do that. You can reclaim the VAT on purchases made in the period (6 months IIRC) before registering. Too late for the OP, unfortunately.

[MrMarkyMark]

Buy a macbook, external mouse, keyboard, and an iPhone. You might not need all that, but who cares and you can still claim VAT refund.

And he can sit on the cardboard box the Mac comes in I suppose