VAT

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AtW replied

23 June 2013, 23:43
Originally posted by Uncle Albert View Post

Are you sure you're cut out to be a fan of gladiator films you double dipping, pasta flying, radiator bleeding, AndyW loving, L**y fancying son of a Cornish farmer?

"You must spread some Reputation around before giving it to Uncle Albert again."

Pity...
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Uncle Albert replied

23 June 2013, 22:03
Originally posted by northernladuk View Post

4 replies and no abuse. There is a first

Are you sure you're cut out to be a fan of gladiator films you double dipping, pasta flying, radiator bleeding, AndyW loving, L**y fancying son of a Cornish farmer?
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northernladuk replied

23 June 2013, 21:23
4 replies and no abuse. There is a first

Last edited by northernladuk; 23 June 2013, 21:38.
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scooterscot replied

23 June 2013, 21:16
The VAT you pay is deducted from the VAT you charge with the difference paid or refunded to you.
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MarillionFan replied

23 June 2013, 21:05
No you're correct. The VAT threshold is £79000 and for retail purposes you actually make more being non VAT registered than VAT registered of you can still sell at RRP.

Having owned a number of retail shops before it is best not to register for VAT to start with until you hit the threshold and of you don't have huge vatable expenses. Your spreadsheet calculations won't lie.
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Sockpuppet replied

23 June 2013, 21:03
Yep. That's how it works.

Nothing about being VAT registered means more profit to you. However if your selling to VAT reg companies then it's better to be VAT reg.
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doodab replied

23 June 2013, 21:01
Originally posted by Gaz_M View Post

Ok, I know I'm being thick here but please can somebody help me out?

As part of my Plan B I am setting up an online store and have now found a supplier.

My question is - if I buy an item from my supplier at £13.13 + VAT (£15.76) I don't have to pay that VAT as I'm VAT registered?
Also, if I sell at say £20.00 inc VAT (£3.33) I take it I then have to pay that VAT back?

Well, you pay the VAT to your supplier and then claim it back against the VAT you have collected. So you end up paying 70p in VAT to HMRC.

If that is correct then my profit on that item would be £16.67 - £13.13 = £3.54
If I wasn't VAT registered then my profit would be £20.00 - £15.76 = £4.24

I am obviously getting this wrong somewhere so can somebody please explain what I'm doing wrong?

That seems right to me.
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Gaz_M started a topic VAT

23 June 2013, 20:54
VAT

Ok, I know I'm being thick here but please can somebody help me out?

As part of my Plan B I am setting up an online store and have now found a supplier.

My question is - if I buy an item from my supplier at £13.13 + VAT (£15.76) I don't have to pay that VAT as I'm VAT registered?
Also, if I sell at say £20.00 inc VAT (£3.33) I take it I then have to pay that VAT back?

If that is correct then my profit on that item would be £16.67 - £13.13 = £3.54
If I wasn't VAT registered then my profit would be £20.00 - £15.76 = £4.24

I am obviously getting this wrong somewhere so can somebody please explain what I'm doing wrong?
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