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VAT Registration
Suewre
Posts: 624 Forumite
in Cutting tax
DH has decided to go for Voluntary VAT Registration. (He is a self-employed dryliner/plasterer/metal stud worker).
We were completing the form online this morning, and when it came to the date that we wanted it to start, we were unsure of what to put. It says that it takes a month to send out the number, and that if you do work between registering and receiving the number to add on a figure equivalent to the VAT to your invoices (but not put it down as VAT) and then re do the invoice when you get the registration number. I explained this to dh, and said that we had better pick a date over a month away. He then said that he thought that the work he was doing at the moment didn't have to have VAT added, but he wasn't at all sure.
I got him to ring the person who told him this, for confirmation, and then looked it up on HMRC, and because the work is on housing then it is zero rated for VAT.
He thinks it is about 2 years since he worked on a building that was not for housing (a school). Definitely not in this tax year or in 0708. Is it worth his while back registering from the point just after he last worked on a VAT rated project, so that he can claim back any VAT paid that he is allowed to claim (Items not used up such as tools that he still has). Or would this cause problems?
We ticked the box to say that he is likely to be claiming back more VAT than he will be charging.
Are there any other pitfalls that we (he) may fall into?
We sent off the forms last week for him to be paid gross of tax. So hopefully will hear from them soon. I would rather the tax was sitting in our account earning interest than HMRC.
We were completing the form online this morning, and when it came to the date that we wanted it to start, we were unsure of what to put. It says that it takes a month to send out the number, and that if you do work between registering and receiving the number to add on a figure equivalent to the VAT to your invoices (but not put it down as VAT) and then re do the invoice when you get the registration number. I explained this to dh, and said that we had better pick a date over a month away. He then said that he thought that the work he was doing at the moment didn't have to have VAT added, but he wasn't at all sure.
I got him to ring the person who told him this, for confirmation, and then looked it up on HMRC, and because the work is on housing then it is zero rated for VAT.
He thinks it is about 2 years since he worked on a building that was not for housing (a school). Definitely not in this tax year or in 0708. Is it worth his while back registering from the point just after he last worked on a VAT rated project, so that he can claim back any VAT paid that he is allowed to claim (Items not used up such as tools that he still has). Or would this cause problems?
We ticked the box to say that he is likely to be claiming back more VAT than he will be charging.
Are there any other pitfalls that we (he) may fall into?
We sent off the forms last week for him to be paid gross of tax. So hopefully will hear from them soon. I would rather the tax was sitting in our account earning interest than HMRC.
Quidco cashback paid out so far £745.89 :j
0
Comments
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As your husband is working on a zero rated project at the minute, you can put down whatever date you like, as you will not have to account for VAT on invoices before you get your number.
If you register from a current date, you can claim back VAT on goods you have purchased over the last 3 years(providing you still ave the item, eg tools) and any services over the last 6 months (accountants fees etc) - probably not worth trying to backdate the registration
It's probably worth you using the cash accounting system as well - details on https://www.hmrc.gov.uk0
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