Reply to: VAT registration

[XLMonkey]

Wrong way round

Also the 11% (or whatever) is applied to Sales + VAT i.e. £1175 * 11%

FRS gain (loss) = vx - vy - fx - fvx

where
x = VATable sales (remember to exclude bank interest)
y = VATable expenses (remember to exclude all payroll costs, and take the VAT off the expenses off before doing the calculation)
v = VAT rate (17.5%)
f = FRS VAT rate (usually 12 in the first year, and then 13% afterwards)

For most people (on the 13% flat rate) you are better off if your average VATable expenses are less than 12.7% of your pre-VAT gross sales.

I am an IT Monkey

[Sockpuppet]

Nope. No monkey here.

[freakydancer]

Nope.

Most new warehouses are "speculative builds" i.e. there is no-one ordering it the developer just think that one will be needed in that area soon.

I take the clients plans, look for a suitable site (within the area defined by the COG study) that has planning permission (based on the drawings) and make changes as nessecary for the specifics of the project.

Or as seems to be happening more and more fixing the mistakes other people make when they do it in house.

So you're not an IT monkey then?

[Sockpuppet]

Nope.

Most new warehouses are "speculative builds" i.e. there is no-one ordering it the developer just think that one will be needed in that area soon.

I take the clients plans, look for a suitable site (within the area defined by the COG study) that has planning permission (based on the drawings) and make changes as nessecary for the specifics of the project.

Or as seems to be happening more and more fixing the mistakes other people make when they do it in house.

[meridian]

Doesnt matter what you do you'll probably get tSIC 72220. I build warehouses and I got other software consultancy and supply.

You're a structural engineer?

[Sockpuppet]

Don't understand. You don't "get" a SIC code - YOU choose the one most appropriate for your business. But, to be fair, I can't remember which piece of paper you use to notify your chosen SIC code.

When you send in the inital VAT form they give you a SIC code which you can change. I had to change mine but was told that there wasnt a SIC code for management consultancy.

[Sockpuppet]

Wrong way round

Also the 11% (or whatever) is applied to Sales + VAT i.e. £1175 * 11%

Shhh...I'd almost got away with it.

[Pondlife]

Well it depends how much your inputs are but the general concensus is that Flat rate VAT is better.

What are you invoices / costs each month?

e.g.

Per Week

£1000 in
£150 out

Flat Rate:
Vat on 1000 = £175
Vat Claimed Back = £26.25

Normal:
Vat On £1000 = £175
Vat Claimed Back ([1000 * 17.5%] - [1000 * 11%]) = £65

So total benefit: £28.75

Wrong way round

Also the 11% (or whatever) is applied to Sales + VAT i.e. £1175 * 11%

[martinb]

Doesnt matter what you do you'll probably get tSIC 72220. I build warehouses and I got other software consultancy and supply.

Don't understand. You don't "get" a SIC code - YOU choose the one most appropriate for your business. But, to be fair, I can't remember which piece of paper you use to notify your chosen SIC code.

[Sockpuppet]

At the end my accountant advised to register for the regular VAT not the flat rate one !!

Well it depends how much your inputs are but the general concensus is that Flat rate VAT is better.

What are you invoices / costs each month?

e.g.

Per Week

£1000 in
£150 out

Flat Rate:
Vat on 1000 = £175
Vat Claimed Back = £26.25

Normal:
Vat On £1000 = £175
Vat Claimed Back ([1000 * 17.5%] - [1000 * 11%]) = £65

So total benefit: £28.75

[Gonzo]

At the end my accountant advised to register for the regular VAT not the flat rate one !!

It depends. If your company's outgoings on things with VAT charged are very low then the flat rate scheme is normally better.

If there are large expenses that you can reclaim the VAT on then the normal regime is better.

Usual disclaimer - IANAA etc etc.

[SandyDown]

Would that be SIC code 74140? I have absolutely no idea how that would help with your VAT registration however.

All I can remember is that the accountant filled out the form, I just had to sign it. From memory, the only details on the form were the company name and address and the business category.

Once the form had been sent in it was then that they asked to see proof that the company was "in business". I presume that they needed to make sure that I wasn't another carousel fraudster.

At the end my accountant advised to register for the regular VAT not the flat rate one !!

[Sockpuppet]

Doesnt matter what you do you'll probably get tSIC 72220. I build warehouses and I got other software consultancy and supply.

[Gonzo]

yep

Would that be SIC code 74140? I have absolutely no idea how that would help with your VAT registration however.

All I can remember is that the accountant filled out the form, I just had to sign it. From memory, the only details on the form were the company name and address and the business category.

Once the form had been sent in it was then that they asked to see proof that the company was "in business". I presume that they needed to make sure that I wasn't another carousel fraudster.

[SandyDown]

Business and Management Consultancy?

yep