I'm a 25 year old student. Should I form a company to avoid paying VAT on stuff?

koru

pgilc1 wrote:

you can voluntarily ASK to register, it doesn't mean it will be granted.

Err, yes it does. Have a look at VAT Notice 700/1 - there's no mention of HMRC having a choice to turn down a registration. They will check that you are or will be making taxable supplies (just as they would even if you claimed to be over the threshold), but as long as you are, they WILL register you. (If you haven't yet issued any invoices, it can be difficult to prove that you will be doing so. It isn't sufficient to simply claim an intention; you need to show you have done something concrete, like taking a business lease, or buying specialist equipment. Or just wait until you have invoiced.)

motorguy

koru wrote:

Err, yes it does. Have a look at VAT Notice 700/1 - there's no mention of HMRC having a choice to turn down a registration. They will check that you are or will be making taxable supplies (just as they would even if you claimed to be over the threshold), but as long as you are, they WILL register you. (If you haven't yet issued any invoices, it can be difficult to prove that you will be doing so. It isn't sufficient to simply claim an intention; you need to show you have done something concrete, like taking a business lease, or buying specialist equipment. Or just wait until you have invoiced.)

Cool.. i stand corrected.