Vat help please

moleskin1

Hi Everyone
I am going to need to register for business vat quite soon , could someone answer some basic questions please? I understand that I will charge vat on my services, which in turn will be payed to hrmc.
I can claim traveling from my main place of work ,I guess then I cant claim the vat back on the fuel also like wise cant I claim vat charged by hotel bills,train fares etc. If I have already claimed my traveling allowance.
Thanks Rob

Gertie_Walker

Yes, if you register for VAT, you will charge VAT to your customers and them pay this over to HMRC.
You need to set against that VAT the VAT whihc you have paid to all your suppliers - for materials, travel, accommodation - everything. Your travelling allowance is for income tax purposes, not VAT.

zygurat789

So you only pay to HMRC the net of VAT received and VAT paid. From what you have said it would appear that you would be better on a cash basis rather than invoice basis.
The VAT you have paid is, in material cases, clearly stated on the invoice; note there is no VAt on train fares and you cannot claim the VAT you pay on the purchase of a car.