Should I register for VAT

[Xcwebsite]

I am a sole trader who runs a website, I earn 90% of my money from ads/sponsorships. I will be buying bikes which are £4000+ so I could benefit from the VAT savings from that. If I claim back more vat then I have gotten from customers every month is that fine?

 

[Newchodge]

I am a sole trader who runs a website, I earn 90% of my money from ads/sponsorships. I will be buying bikes which are £4000+ so I could benefit from the VAT savings from that. If I claim back more vat then I have gotten from customers every month is that fine?

Are you buying the bikes solely for your business?

 

[HFE Signs]

Another consideration - Are your customers vat registered? Once you are vat registered all your price are vatable. Yes you reclaim vat on purchases but you also have to declare vat on sales.

 

[Xcwebsite]

Are you buying the bikes solely for your business?

Yes as will be used to make videos / test items

 

[Newchodge]

Yes as will be used to make videos / test items

And not used for anything else, like going on bike rides?

 

[Deleted member 335660]

It is only worth registering for VAT if your sales exceed the threshold (£85,000) or your customers are mainly businesses who will benefit from claiming the VAT back.

If the VAT office owes you money, they are likely to keep it until the year end expecting your annual sales to result in you then owing them money.

 

[HFE Signs]

If the VAT office owes you money, they are likely to keep it until the year end expecting your annual sales to result in you then owing them money.

Really? I always thought balance either owed or reclaimed was settled at each vat period?

 

[DontAsk]

It is only worth registering for VAT if your sales exceed the threshold (£85,000)

It's not "worth it" it's mandatory!

If the VAT office owes you money, they are likely to keep it until the year end expecting your annual sales to result in you then owing them money.

Not true. I get a payment by bank transfer in any quarter where they owe me money.

 

[Truemanbrown]

If your turnover is over the £85,000 in any twelve months, then you have no choice but to register for VAT.

If your turnover is less than £85,000, I would only register for VAT if: -

• the majority of your customers are VAT-registered themselves and able to reclaim the VAT on your invoice.
• you register for VAT so that your customers and competitors believe your business to more significant than it is.

If you do register for VAT, there are two factors that you need to consider.

First, you can make a claim for certain pre-registration expenses.

Second, you can register for the flat rate scheme. Although, I would ensure that you would not be classed as a low cost trader. I would also have your accountant go over the figures before registering.

 

[WaveJumper]

And if you do register for VAT and are claiming for items which lets say are questionable to your actual business my advice would be make sure you have all your ducks in a row and be prepared for an audit it can be quite a stressful process when they sit there and go through a years work of invoices.

And as already mentioned any VAT errors are easily rectified on your next return

 

[DontAsk]

• the majority of your customers are VAT-registered themselves and able to reclaim the VAT on your invoice.

It's not really anything to do with the number of customers.

If the greater part of your invoice value is for customers who are VAT registered, or for whom VAT free sales (i.e. lower prices) would be attractive, e.g. exports.

 

[Deleted member 335660]

It's not really anything to do with the number of customers.

If the greater part of your invoice value is for customers who are VAT registered, or for whom VAT free sales (i.e. lower prices) would be attractive, e.g. exports.

I can only assume that things have changed then.

 

[DontAsk]

I can only assume that things have changed then.

???

Nothing has changed.

You could have thousands of low value VAT registered customers and a few large non-VAT, or you could have thousands of low value non-VAT registered customers and a few large VAT registered. One is a majority of VAT registered, one isnt, but both could lead to a decision to register.

That's why the decision is not related solely to the number of customers who are VAT registered, but the value of the transactions.

 

[Deleted member 335660]

???

Nothing has changed.

You could have thousands of low value VAT registered customers and a few large non-VAT, or you could have thousands of low value non-VAT registered customers and a few large VAT registered. One is a majority of VAT registered, one isnt, but both could lead to a decision to register.

That's why the decision is not related solely to the number of customers who are VAT registered, but the value of the transactions.

Well it seems to have changed since I was last involved. Then it was simple; if you were over the limit you had to register. Also I was really talking about the VAT mad paying you if necessary every month.

 

[DontAsk]

Well it seems to have changed since I was last involved.

No it hasn't.

Then it was simple; if you were over the limit you had to register.

That's still the case. Nothing i have said refutes that