Some VAT Questions

[beggin]

Hello there,

I am in the process of setting up a business, however I have a few questions about VAT which are a bit confusing.

In the first year, I don't expect my turnover to be over £70,000 so I don't have to register for VAT.

However, say my turnover did go over £70,000 within the first 9 months of starting my business. Will I have to pay VAT on my sales for the previous 9 months or do I only start paying VAT on the sales from the day I register? I assume if I don't have to pay VAT for those previous 9 months, I can't claim back VAT on my purchases either?

Also, another scenario. Say in the first year of my business, my turnover is £50,000. Then 6 months into my second year (18 months into my business), my turnover reaches £70,000 for that year. Will I have to pay VAT on my sales from the first year even though my turnover was below £70,000 that year, or do I just start paying VAT for the second year?

[Williams lester]

Have a read here, this should answer all your questions http://www.hmrc.gov.uk/vat/start/introduction.htm

[MyAccountantOnline]

If you do have to register for VAT you dont then have to pay VAT on the sales you made before you registered. You only pay VAT (assuming you registered at the correct time) from the date of registration.

You can claim VAT on goods you have bought which you havent sold when you register up to three years before the date of registration, and for services you buy going back up to six months before the date you become VAT registered.