Help wanted please !!

MartinS

Im hoping if i can post this on here someone will be able to advise me on the route i should go.

I have taken a job. which is self employed, it involves working for a courier company. so here are my probs

Income.
I get paid by the company for the jobs i do + vat.

Outgoings.
i fund my own fuel + vat
i have to pay a rental fee + vat

this is the only outgoings there is above.

My problem is the owner of the company told me to get vat registered so this allows me to claim vat back on the diesel i use, if i do do i have to declare the vat on my income? im nearly lost already..

If i dont become vat registered, i know i wont be able to claim the vat back on fuel, and i dont have to declare the vat on my wages.

Please could someone advise me.

Regards

Martin

chalkie99

You may have misunderstood what they have told you.

They cannot pay you "+VAT" as you are not VAT registered.

So, your income will be "the jobs" end of.

You will have to pay the VAT on anything they charge you for and suffer the loss.

I would suggest you see if the job is going to work out for you before you even think about registering for VAT yourself. I did this work for many years but cannot see how anyone can earn a living out of it these days.

Mistral001

As far as I can see it is up to you to decide whether you become VAT registered or not if your turnover is below the £73 threshold approx a year.

If you are VAT registered you will submit invoices with VAT added and if you are not you cannot charge VAT.

If not registered for VAT you will not be able to reclaim the VAT on the fuel though, so you could be losing out if not registered for VAT.

In short they cannot give you VAT. You have to charge it and you can only do that if you are registered for it.

MartinS

Mistral001 wrote: »

In short they cannot give you VAT. You have to charge it and you can only do that if you are registered for it.

I get a purchase order every week with the jobs i have done with the vat added on to the bottom. ?

Lost

chalkie99

Sounds like they are giving you a purchase order and you have to write them out an invoice to get paid?

You cannot be paid the VAT amount. You have to invoice for the net amount before VAT.

Don't go rushing into registering for VAT until you know if you can stick the job. The industry is notorious for high turnover of drivers.