Input Vat question

LittleFatFairy

Hi

I have had a good trawl through the website and visited HMRC but can't find an answer to my query, so here I am?

I have registered with HMRC and also applied for an exemption from having to pay NI.

Basically I am doing some book keeping work and also selling products direct.

I will not be earning enough to be VAT registered and so not charging VAT.

However the stock I buy has VAT added to it. Also items I need for my business have VAT added to them.

Is there a way of claiming this VAT back.

I am keeping all my receipts and invoices. I keep my order sheets and handwritten total of cash sales.

Any help will be most appreciated. Thank you x

System

To claim back VAT you need to be VAT registered to start with. You don't exactly claim it back, you are more a conduit for getting it to the government.

LittleFatFairy

Thanks !!!!!!. I never thought of myself as conduit! There's a scary thought ... so if I pay vat on stock but don't make much of a profit, can I have the vat back that I paid out for.

nettleby

No, if you aren't registered, once you've paid for VAT it's irrelevant how much profit (or loss) you make. It's just part of the cost of buying.

chalkie99

As stated, you cannot claim any VAT back but I am a bit concerned that you are undertaking book keeping work if you don't have a basic understanding of this.

It might be a good idea to get some training before landing your clients with problems.

snowman2_2

If you claim the VAT back on purchases, you will have to charge VAT to your customers. HMRC wins every time

LittleFatFairy

Thanks for that.

Yes Chalkie you are right to have concerns. Fortunately I am only doing the expense spreadsheet at the moment, and also going to do the payroll.

Doing a book keeping course too. Just haven't got to the VAT bit yet!

Thanks for your help. x