Advice Needed

[FLYING-ARROW]

Am Aviation Broker, I dont have an accountant as such as I do all my Financial work my self just about manage it.

I am soon working on a contract in the region of about 270 000 USD a month My Client is Based outside of the UK and I am not Currently VAT registered what I wanted to know as Ive heard from others that any Aviation related Business especially Leasing is exempt from VAT due to the fact no one can actually tell where in time an Aircraft is or will be, does this mean I dont need to be VAT registered my Net Profit from this deal will be close to 20 000 Pounds per Month will this Means I must become VAT registered as within 4 months I expect to hit the 61 000 limit required for obligatory VAT registration any advice is welcomed thanks In advanced.

regards
FA

 

[Kent Accountant]

Could you be more specific about the transaction i.e what does the income represent and what are the costs that you will be incurring?

Bob

 

[profitxchange]

Why not ring thing VAT man! They are usually very helpful.
Whilst not an expert in the field I would have thought vat registation is based on where the business is trading/based. VAT registration is based on income not profit. If you are a b2b business then VAT is not an issue syurely as it is cascaded through the supply chain.

 

[Alpha]

FA

If you are based in the Uk and the work is performed in the Uk then it is highly likely that you will have to register for VAT. I cannot think of any line of work that would be exempt that you may be working in.

Secondly the requirement to register for VAT is based on turnover not profit so you will be required to register immediately.

Thirdly if you are earning that amount of money and struggling you should really find yourself an accountant they can be extremely useful in saving you money and preventing you from making big and costly mistakes:smile:

 

[Kent Accountant]

He could be acting as an intermediary for a US company - in which case any fees could be outside the scope of VAT, which is why we need more details about the actual transaction

Bob