getting a vat number

aayush

hi can one advise me how i can get VAT number as wife is a beautician by trade and has had cards printed but business is slow but hopes to take of big time soon ? and will she have to show purchases for business but wont show any salary as new business but little income and will she have to do vat retruns 3 monthly

System

Is your wife expected to have a turnover of greater than £81,000 in a year? If not then there is no requirement to register for VAT.

However you can still register if not expecting to reach that threshold. The flat rate scheme is one reason to register if below the threshold as simplifies the tax affairs. For a beautician the rate will be 13%.

For flat rate info see https://www.gov.uk/vat-flat-rate-scheme/overview
For registration information see http://www.hmrc.gov.uk/vat/start/register/

aayush

yes but to buy stuff certain people ask for VAt Reg number ?

zygurat789

aayush wrote: »

yes but to buy stuff certain people ask for VAt Reg number ?

This is because they are only supposed to sell to bussinesses, see what else they will accept.
You do NOT want to register for VAT.
If you do you will have to either charge an extra 20% which will make the clients walk away or you will have to suffer one sixth (1/6) of your turnover as a tax which will reduce your income.
Neither of these are good news
Yes you can reclaim VAT on payments but it will not amount to much, just do the maths.
If your business deals with other VAT registered traders it doesn;'t matter but if you deal with unvat registered people it is bad news.

martindow

aayush wrote: »

yes but to buy stuff certain people ask for VAt Reg number ?

Wholesalers want to be sure that they are selling to proper businesses so often have standard questions like this. If you contact them they are quite likely to be happy with other evidence - a cheque from a business account, a letter heading or business card for instance. The last two are ludicrous when anyone can print something out on their computer but they often satisfy companies.

Don't register for VAT merely to satisfy a wholesaler without discussing the implications with an accountant. Having to charge an extra 20% on your wife's sales could make her prices much higher than competitors.

OhReally_2

aayush wrote: »

hi can one advise me how i can get VAT number as wife is a beautician by trade and has had cards printed but business is slow but hopes to take of big time soon ? and will she have to show purchases for business but wont show any salary as new business but little income and will she have to do vat retruns 3 monthly

The only legitimate way to obtain a VAT number is to register

http://www.hmrc.gov.uk/vat/start/register/how-to-register.htm

If accepted, a VAT number will be allocated. Yes quarterly VAT returns will be required.

zaax

If your making enought money to be VAT registered you need an accountant.

bris

Being VAT registered puts up all your prices and could make your wife uncompetitive.

Just explain to the suppliers you are not VAT registered and ask what else they will accept to open an account, no one I know knocks back accounts because they don't have a VAT number.