Thresholds

[js5691]

Hi all

Long time reader first time poster. I'm looking to start my first store however I have few questions for some experienced heads.

Firstly with regards to being a sole trader with the turnover threshold of £81000. If you were to surpass that turnover amount mid year would you have to pay VAT for that £81000 or just on any sales from then on for whatever you sell after you hit £81000

Thanks

 

[john1989]

The current threshold is £82,000.

You must start charging from your effective date of registration.

 

[js5691]

So they would not ask for any back payments.?

 

[Walkol]

No. You will need to account for VAT from the date of registration. You can claim back VAT on certain items (generally, items you still hold) but wont be required to back date sales.

Google is your friend

https://www.gov.uk/vat-registration

 

[john1989]

Back payments for what?
You can only apply VAT to your sales from your registration date.

 

[js5691]

some of my customers are able to claim back VAT on these items, I won't be charging VAT as I'm under the threshold. would you label them as vat free or how would you counter act customers already trying to claim back on vat free purchases

 

[john1989]

There is no VAT for your customers to reclaim as you cannot charge them VAT if you are not VAT registered.

 

[js5691]

Just making sure they would not want to see the VAT for the £82,000 once hit that threshold it's good to know they will want to see vat on sales after that figure

 

[js5691]

Yes but would it be illegal to say list the products as VAT free? I would not want to give them a total price then have them trying to claim back vat because it isn't stated that the goods are vat free

 

[john1989]

Just show an invoice with no VAT and a total.

They cannot reclaim any VAT without a valid invoice. This would include a VAT amount, a VAT number etc.