- Original Poster
- #1
hi everyone i'm new here. I'm looking for some advice on VAT. I am currently looking into starting up my own shop (clothes and accessories). I've done quite a lot of research into it, but i'm stuck on VAT. The property i've seen (to rent) is registered for VAT so therefore VAt will be charged on my rent. Obviously if i was VAT registered, i could claim this back, but I wasn't planning to be VAt registed as I do not think my turnover wil be above the threshold (£64k i think??). However, is it in my best interest to become VAT registered even though its not compulsory? I am eligible for the flat rate 6% VAT rate which is designed for the small businesses (less paperwork, less hardwork etc), which is a plus, however you can't claim vat back when you're on this scheme as its incorporated into the flat rate. So therefore if I was going to become VAt registered, I'd have to use the normal 17.5% scheme and all the paperwork & hardwork, etc. and i'm really wondering if its worth it, when its not actually compulsory?? the VAT on the property is just short of 2k, which i could really do without paying, but is all the VAt paperwork, records and sorting out worth it to save that much, and plus my prices would have to go up to incorporate the VAT. I'm expecting my turnover to be roughly around £50-55k per year if that.
help!!
thanks
p.s. the estate agents information pack says vat would be payable on rent and other outgoings. what are the other outgoings? i know there are rates, bills and insurance, so maybe the landlord pays these and i pay him back plus vat?? i'm confused, i'll have to ask. thanks again!
help!!
thanks
p.s. the estate agents information pack says vat would be payable on rent and other outgoings. what are the other outgoings? i know there are rates, bills and insurance, so maybe the landlord pays these and i pay him back plus vat?? i'm confused, i'll have to ask. thanks again!