VAT

HI All

i have a couple of newbie questions....thought i could get your vast experiance to help me out ;)

Ive seen on the government website that you only need to start paying VAT if you make over 77k in a year, does this mean any prices that i charge people should or shouldnt include VAT?

Maybe sounds simple, but thought id ask here..

Hi, you don't need to charge vat until your turnover reaches the ceiling of £70,000 odd, however you can still register for vat, even if you don't do that much biz, best to ask your accountant, if you need one, let me know.

As the cost in this game are so high and vatable In my veiw most ods should be registered for their own gain

As the cost in this game are so high and vatable In my veiw most ods should be registered for their own gain

So in otherwords

* Get Vat Registered

* Charge the customer+vat

*Pocket the Vat myself?

Yes mr carswell if you really want to do it that way !

Not sure how long it will be before the revenue catch up with you

Well you can pocket the vat but you may possibly get a visit from mr HMRC sooner or later
Some of our couriers are on the flat rate scheme where you can charge the vat but only pay HMRC around 9%.(Don't quote me on this figure though)
You are unable to claim anything back under this system apart from capital purchases such as a new vehicle.
You still obviously need to keep accurate records.

I would advice any Courier to become VAT registered. All van related costs are all vatable, as is fuel so tiz a no brainer. You can be VAT registered whatever your turnover. There is a flat rate scheme that you should look into BUT if you're thinking of being VAT registered and pocketing it, then think again....NEVER f*** around with the VAT man, and if you're thinkin of charging VAT when not VAT registered it won't work cos we all wanna see your VAT registration number on your invoices, and can check it.

im on the flat rate scheme and you charge your normal 20%vat but only pay the vat man 9% of your turnover. You cant claim vat for diesel etc but can claim for purchases such as a new van etc.

Just to clarify ... on the flat rate scheme, the 9% is for the first year after registration only. After that you have to pay 10%.

Correct, it's 10% for courier services but they give you a discount of 1% for the first year which is worth a few quid.