Reclaiming VAT?

[ibscom]

If my company is not VAT registered can I claim back the VAT I pay on stock that I purchase? I'm getting a bit confused about it.

 

[Joyous]

If my company is not VAT registered can I claim back the VAT I pay on stock that I purchase? I'm getting a bit confused about it.

In a word...no.

In several words...if you're not VAT registered you cannot reclaim VAT and you cannot charge VAT. The cost of anything you buy for your business is the VAT inclusive price. If you subsequently register for VAT you can reclaim the VAT on any goods including stock purchased up to three years prior to registration provided it's still in your possession at registration date.

Regards

Joy

 

[ibscom]

Cheers for that. My accountant has advised me not to become VAT registered untill I hit the required level. I know that I don't have to but I think it looks a bit more proffesional if I am. I must admit I'm not convinced by my accountant. He seams like he can't really be arsed with us untill we can pay him big bucks which as a start up I'm not in a position to do. Mind you he's still charging us £500 per year and thats just for final accounts which I think is a bit of a rip off. I'm on the look out for a good accountant!

 

[DuaneJackson]

I agree that there are reasons for becoming VAT registered beyond thoughs an accountant considers.

For a very good accoutant go to either www.joyandco.co.uk or www.alphalimited.co.uk

 

[ibscom]

Cheers for that I will check them out.

 

[Kent Accountant]

Hi

If you can be bothered with the extra record keeping and the remote possibility of a vist from the VAT man for a control visit, it is worth registering voluntarily if you incur VAT of any significance on your purchases/expenses and the bulk of your clients are VAT registered and can reclaim the VAT that you charge them. If the bulk of your clients are not VAT registered or are private individuals, avoid registration as long as possible. The current turnover level for compulsory VAT registration is £61,000 and you need to look back at the end of every month to your turnover for the previous twelve months

Bob

 

[ibscom]

Thanks for that. At the moment I am selling to Joe public with a view to business customers later. So from the gist of your post I think you've indicated that it would be best for me to stay unregistered untill i've hit the threshold.

Still think my accountant just can't be bothered with me. He said that it would be doubtful that the revenue would register me anyway. Not sure that isn't him thinking, "not gonna earn much here so don't want the hassle". I am actively looking for another acountant.

 

[Alpha]

Thanks for that. At the moment I am selling to Joe public with a view to business customers later. So from the gist of your post I think you've indicated that it would be best for me to stay unregistered untill i've hit the threshold.

Still think my accountant just can't be bothered with me. He said that it would be doubtful that the revenue would register me anyway. Not sure that isn't him thinking, "not gonna earn much here so don't want the hassle". I am actively looking for another acountant.

Of course the revenue will register you unless you are doing something rather shady such as selling mobile phones between several group companies and buying them from abroad in which case your accountant should not have you as a client:smile:

 

[Kent Accountant]

Of course the revenue will register you unless you are doing something rather shady such as selling mobile phones between several group companies and buying them from abroad in which case your accountant should not have you as a client:smile:

For my sins, I attend the VAT Working Together Group meetings and it seems that carousel fraud is currently occupying many control officers who have been transferred from their normal jobs to help try to stem the flow of £10/£20 billion per annum - they're also worried about people buying CDs from Jersey - that's another billion down the drain!!

Bob