Vat!!!!!

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Archangel replied

26 March 2008, 14:52
Just to add to the previous (good advice) post.

If you have spent more VAT than you have charged (at startup for eg) that nice VATman will send you a cheque for the difference.
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jonny7_2002 replied

26 March 2008, 09:28
Originally posted by BrowneIssue View Post

No answer yet? Odd.

Each quarter you buy stuff which has VAT included in its price.

Each quarter you add value to that stuff and sell it and you charge VAT on it.

You pay HMCE VAT you charged minus VAT you paid as a cheque or online as an electronic payment.

E.g. You buy £94 of stuff. That is £80 + £14 VAT. At the end of the quarter you can claim £14 back from HMCE.

You install that stuff on a client site and charge them £200 to which you add £35 VAT so they pay you £235. You owe HMCE £35.

At quarter end you do a VAT return for £14 - £35 = £21 you owe HMCE. You have a month to pay it to them.

VAT is completely separate from your personal tax - it is quite a different thing.

Good man! now it all makes sense!! Thanks
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BrowneIssue replied

20 March 2008, 22:48
No answer yet? Odd.

Each quarter you buy stuff which has VAT included in its price.

Each quarter you add value to that stuff and sell it and you charge VAT on it.

You pay HMCE VAT you charged minus VAT you paid as a cheque or online as an electronic payment.

E.g. You buy £94 of stuff. That is £80 + £14 VAT. At the end of the quarter you can claim £14 back from HMCE.

You install that stuff on a client site and charge them £200 to which you add £35 VAT so they pay you £235. You owe HMCE £35.

At quarter end you do a VAT return for £14 - £35 = £21 you owe HMCE. You have a month to pay it to them.

VAT is completely separate from your personal tax - it is quite a different thing.
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jonny7_2002 started a topic Vat!!!!!

20 March 2008, 13:29
Vat!!!!!

Another stupid question from the man over here!

I will be contracting and advertising a home repair service for printers and computers. with this i am confused with the vat side thing.......

Question is about when claiming your VAT back (end of year or quarterly not sure when you do that yet)
Imagine i have spent £2000 on vat in one year buying computer parts to fix joe public's machines when i claim this back does it come back to me in a lump sum or is it given in a tax releif way??

Sorry if this is a stupid question.

jonny M
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