Business VAT Threshold?

[J_A_M_E_S]

Can someone please confirm my understanding of the statements below?

If a company (not registered for VAT) sells less than £68,000 in VAT-able goods in then no VAT needs to be paid?

If a company (registered for VAT) sells more than £68,000 then VAT needs to be paid on what? Just the sales above the £68,000 or the whole amount on the VAT-able products?

Does VAT on the sales below £68,000 ever need to be paid in future years? Or is each year always totally separate?

I've checked business link website but I can't seem to find these answers?

Many thanks in advance . . .

 

[Williams lester]

Have a look here, this will tell you what you need to know about VAT;

http://www.hmrc.gov.uk/vat/start/introduction.htm

 

[David Griffiths]

Can someone please confirm my understanding of the statements below?

If a company (not registered for VAT) sells less than £68,000 in VAT-able goods in then no VAT needs to be paid?

Correct

If a company (registered for VAT) sells more than £68,000 then VAT needs to be paid on what? Just the sales above the £68,000 or the whole amount on the VAT-able products?

On all turnover after the date of registration.

Does VAT on the sales below £68,000 ever need to be paid in future years? Or is each year always totally separate?

Once registered, VAT has to be accounted for an all taxable turnover. You don't get an allowance each year up to the VAT limit

 

[J_A_M_E_S]

Correct



On all turnover after the date of registration.



Once registered, VAT has to be accounted for an all taxable turnover. You don't get an allowance each year up to the VAT limit

Thanks - that gets me closer to knowing what i'm talking about (I will of course be seeking legal advice before any key decisions are made)!

 

[elaine@cheapaccounting]

remember it is a rolling 12 months and not the accounting year