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    • Gerald1986
    • By Gerald1986 9th Oct 16, 9:55 PM
    • 1Posts
    • 0Thanks
    Gerald1986
    Going vat registered
    • #1
    • 9th Oct 16, 9:55 PM
    Going vat registered 9th Oct 16 at 9:55 PM
    Hi guys
    If this isn't in the correct thread then hopefully admin can move.

    So firstly I'm a self employed joiner working on new builds in n Ireland.
    I'm currently looking at buying a new van and trying to find the best way to go about this to save me money when doing my tax return next year. I usually do my tax return myself with help from the internet and friends.

    I have thought about registering for vat even though I am under the threshold, therefore being able to claim the vat back on the van amongst other thinks such as fuel.
    The only concern I have is when I do private work, I will need to add vat to my prices possibly costing me jobs.
    Has anyone experience getting away from vat registered status, incase my work clients would change in a few years. I have been told it can be difficult to get away.

    In regards to tax on the van, can I only put through the van value each year as a capital gains allowance and work out the depreciation. Or is there another better way.

    Hopefully this makes some sense
Page 1
    • Pennywise
    • By Pennywise 10th Oct 16, 3:23 PM
    • 8,177 Posts
    • 14,244 Thanks
    Pennywise
    • #2
    • 10th Oct 16, 3:23 PM
    • #2
    • 10th Oct 16, 3:23 PM
    I have been told it can be difficult to get away.
    Originally posted by Gerald1986
    Not really, as long as your turnover is under the de-registration threshold it's a simple process, usually rubbed-stamped by HMRC automatically. The only issue is that you may have to repay any input VAT claimed on vehicles, equipment, stock etc that you own as at the deregistration date.

    But, yes, you will potentially be more expensive for customers who aren't VAT registered, mostly domestic customers, but also maybe charities, small businesses, public sector customers, etc., but there again, most of you larger competitors will likewise be vat registered, so you'd only be more expensive against other smaller firms and "odd-job" type businesses, so it may be a different market anyway.
    • leveller2911
    • By leveller2911 10th Oct 16, 5:25 PM
    • 7,350 Posts
    • 13,405 Thanks
    leveller2911
    • #3
    • 10th Oct 16, 5:25 PM
    • #3
    • 10th Oct 16, 5:25 PM
    Hi guys




    In regards to tax on the van, can I only put through the van value each year as a capital gains allowance and work out the depreciation. Or is there another better way.
    Originally posted by Gerald1986
    I'm a self employed Joiner and have been vat registered for around 10yrs . I think many small vat registered businesses seem to lease their vans rather than buy because its more tax efficient.

    I chose to buy one outright and claimed all of the invoice cost back in year one under the AIA (Annual Investment Allowance) scheme. But there are some vehicles that aren't included which IIRC are some of the crewcab trucks and I believe its down to the amount of weight they can carry and alos the number of seats which classes them as cars rather than commercial vehicles .....

    Pennywise is the one who would be able to clarify for you..
    If we in parliament cannot gain from ruling,then there is very little point in us being here: (Lord Manchester 1650) :rolleyes: how true!
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