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Topic Title: VAT REGISTERED
Topic Summary: Are You ?
Created On: 30 January 2013 08:38 PM
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 01 February 2013 09:59 PM
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sparkingchip

Posts: 5938
Joined: 18 January 2003

When I did the VAT for my dad's Ltd. company and domestic extensions were zero rated I was pulled up because we put half a dozen paving slabs down to extend the existing path to the new back door and "that's minor civil engineering works, so liable to VAT unlike the extension" then that nice Mr Lawson simplified things by putting VAT on everything.

Andy

Edited: 02 February 2013 at 12:26 AM by sparkingchip
 02 February 2013 12:00 AM
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sparkiemike

Posts: 1537
Joined: 24 January 2008

Originally posted by: BrucieBonus

Hmmmm, Martyn can you explain for me please about the VAT?



The way I see it (which might be wrong of course) is that



I do a days work at say £300 labour and £50 materials. If I am not VAT registered then I charge customer £350 of which £10 is VAT that I can't claim back


Not quiet true, what about the VAT on all your other expenses (e.g fuel, vehicle maintenance, tools, scheme memberships etc). All this can be claimed back as well as VAT on new vehicle purchases.

If I am VAT registered the next day I charge the customer £410 and can claim back £10 of VAT. The customer can't claim anything back as they are not VAT registered. What the customer sees is that I am £60 more expensive than the day before.... And I gain £10 - but for this have to do VAT returns every quarter.

Or am I missing something??


In theory you could lower your daily rate because your expenses are lower, but I accept in practise this is unlikely

Welchyboy - I'd be interested to know if the change has meant you have lost domestic customers?
 02 February 2013 09:57 AM
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bajb

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One reason my company originally registered for VAT was that I had a lot of work ahead altering a listed building and being VAT registered allowed the company to charge 0% output VAT. That concession went last autumn. However a significant amount of work I now do is in the renewable energy area. That and heating controls for example attracts 5% output VAT. So it is a no-brainer to be registered if you work in these areas. See:
http://www.hmrc.gov.uk/vat/sec...mers/energy-saving.htm
The van VAT argument is a good one also.
I think the downside is that HMRC VAT types can be particularly agressive so you need to be on your toes with the paperwork.
 02 February 2013 10:58 AM
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sparkingchip

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Then there is the disability market fitting showers etc to consider, though I may not be up to date on the rules regards that type of work.

Andy
 25 February 2013 10:52 PM
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sparkingchip

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Joined: 18 January 2003

Some examples of lower VAT rates

Presumably if you charge VAT the main contractor can claim it back and charge out at the lower rate, but if you aren't VAT registered and purchase materials then it is lost forever.

Andy
 26 February 2013 08:00 AM
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dbullard

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Joined: 02 March 2006

I am not VAT registered always hovered below the threshold which is now I believe is 77k, but a pal of mine with a Bathroom Supply company is and we have a regular chat about VAT etc.

His old showroom was broken into and his PC was nicked with his books on etc all of his tools and all of his paperwork strewn outside and blown all over the local train line, along with one quarter of his vat returns, because he couldn't prove anything they looked at his previous returns and fined him 7k.
Which was nothing like the amount he took, but because he couldn't prove anything they assumed the amount along with the fine totaled the 7k


Regards

Daren

-------------------------
..... Dont pee in my pocket and tell me its raining ......


www.quest-electrical-sw.co.uk
IET » Wiring and the regulations » VAT REGISTERED

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