quick one about VAT and turnover

[confused]

Hi all,

I am not VAT registered at the moment, but a lot of the people I deal with are and I may well register for VAT later in the year even though my turnover is below the £58k mark.
How exactly is this figure calculated, say for eg in a month my income was £3.5k, and my outgoings were £1.5k, does this mean my turnover was £5k? or does the turnover only apply to items/services directly, i.e. parts/time and such but not other expenses for example if I travelled around england on various jobs and spent £1000 on fuel, another £100 on car parks and £100 on the phone, does this £1200 count towards turnover or not?
Hope that makes sense!

Thanks

 

[bwglaw]

It is £60,000 a year now and turnover is purely what is coming into the business regardless of what expenses you have. In other words your turnover are your invoice sales.

Your expenses will only be relevant when you complete your first VAT return to reclaim any of the VAT you have paid on items.

Jonathan

 

[confused]

Thanks

 

[bwglaw]

No problem at all