Pre Start Up

[RAIDTesting]

I currently work full time in the emergency services and I'm looking to start up an online business as a second income.

The online business is a IT Security business, focussed on given vulnerability assessments and pen testing.

I have the knowledge and ability to begin operating however I do require some equipment and training, the training is fundamentally to obtain accreditation, not to develop a new skill.

With this in mind, would I be able to set up the business with company house and pay for the additional training/equipment (without vat), without an income through the company? Essentially for the purpose on saving money paying for VAT, then being able to use the equipment/training cost to offset any tax liability on the profit from the current financial year.

I am new to the business/financial world so any help would be appreciated

 

[Nochexman]

You have to pay VAT when you buy in services. VAT is not a top priority for you and your business. Ask your local chamber of commerce about how to go about starting a business they will be able to point you to some good training courses. Good luck and welcome to the forum!

 

[RAIDTesting]

You have to pay VAT when you buy in services. VAT is not a top priority for you and your business. Ask your local chamber of commerce about how to go about starting a business they will be able to point you to some good training courses. Good luck and welcome to the forum!

Thanks for the reply.

I've been looking through online articles etc and saw that vat can be claimed back from products bought for the company, ie computers, I thought it was the same for training.

 

[Nochexman]

Yes, you can 'claim back' VAT - but only from the VAT that you collect when you sell your services. While it is great to be able to get some VAT back the thing to focus on is selling (so you can generate some VAT of your own).

 

[lesvatadvice]

Rule-of-thumb - if your clients are in business, register for VAT at an early stage to get VAT back on your costs. You can charge customers VAT, and they recover it.
And ask your Accountant about the Flat Rate Scheme and other VAT schemes.