Reply to: Registering for VAT

[Lucifer Box]

That is why I don't expect a response. How legal can it be for a company to withold the VAT element of an invoce because my company has not given them a photocopy of my VAT certificate?

Tony, just report the agency to HMCR as refusing to pay legally applied VAT. They'll soon cough up after they get a nasty call from a VAT inspector.

[BoredBloke]

"This seemed to me to be a very good question. I suppose that's why nobody has answered it."

That is why I don't expect a response. How legal can it be for a company to withold the VAT element of an invoce because my company has not given them a photocopy of my VAT certificate?

[Xena]

What about free mobile phone sellers, those phones cost them money you know and that includes VAT, yet they give those phones to consumers (end users) for free.

They reclaim the VAT on their purchase.

[expat]

Has anybody here refused to pay the vat element on a purchase because they didn't let you have a copy of their companies vat certificate, or refused to pay becuase you were unsure of the status of the person concerned as they had not passed on a copy of their COI? So why do we have to put up with this from agencies?

This seemed to me to be a very good question. I suppose that's why nobody has answered it.

[AtW]

What about free mobile phone sellers, those phones cost them money you know and that includes VAT, yet they give those phones to consumers (end users) for free.

[DaveB]

So basically what you do is register for VAT to claim VAT that Co pays, but sell "books" for ridiculous price with 0% VAT (say copy of your memoirs for £10k), with extra services (month of IT contracting) done for free (thus nil pounds of VAT to charge client, and thus to send back to IR coffers) so long as book purchased. Now would Tax Gordon say about this?

He'd say your a very naughty boy for evading VAT and send round the boys with the rubber coshes.

[AtW]

So basically what you do is register for VAT to claim VAT that Co pays, but sell "books" for ridiculous price with 0% VAT (say copy of your memoirs for £10k), with extra services (month of IT contracting) done for free (thus nil pounds of VAT to charge client, and thus to send back to IR coffers) so long as book purchased. Now would Tax Gordon say about this?

[Sysman]

Curious.

Since books & mags are zero rated...

<ZG in pedantic git mode>

Eh? If a bookseller is over the turnover threshold they have to register.

They may charge VAT at zero rate (i.e. don't have the write the VATman a cheque), but they can claim the VAT element of their purchases for office equipment etc.


If anything, it's one trade where you'd be a fool not to register no matter how small you are - you aren't becoming less competitive by adding VAT onto the selling price to Joe Public.

[MarillionFan]

I do find it a shame that ATW doesnt even register for VAT. My local big issue seller gives me a VAT receipt ever time I buy one with his LTD company name on it.

[AtW]

True, but VAT Seems to be a hot topic from fraud point of view and IR wants to crack down on it, they would certainly look at small firms more closely and even though everything I do is 100% legit, I dont want increased chance of hassle for the sake of few hundred quid saved, plus this would force me charge VAT on services provided, even though no big deal for companies its something I'd rather avoid at the moment.

[xoggoth]

But there is nothing to do for VAT that you won't sooner or later have to do anyway Atw. You have to account for all the expenses & invoices at year end anyway, I find having VAT every quarter forces me to keep up with it. Hardly a big deal adding a VAT column to the sheet. The actual VAT admin is filling in a short form with only 5 relevant boxes and sending a cheque.

[Pinto]

Check that %rate Pinto. I believe most here will be on 13% and if the first year it's 12%.

Oops, You're quite right. My apologies.

[MrsGoof]

A bit less than that, I' afraid.

Even if you managed to invoice £100,000 a year. The normal VAT bill would be £17,500, whereas the flat rate is £117,500 * 14% i.e. £16,450, so you're £1050 better off i.e. £87.5 per month, half that if you have to pay tax on it.

Definitely only worth it if you buy nothing.

Check that %rate Pinto. I believe most here will be on 13% and if the first year it's 12%.

[BoredBloke]

And they wonder why identity theft is so easy in this country.

[Pondlife]

Abbey check everything at Comp house - the down side is that everything took so f'ing long.