Self-employment grant 4 announcement won't happen till March

macman

strandedwonderer said:

thats all well and good, but this year I think im going to apply for a one off over the VAT threshold,,,, as my usual business is used equiptment wich I dont pay vat on,,,so I dont wat to charge vat either,, its all somthing i want to avoid, it all seems like to much hassle!

im pretty sure once lock down is over and the world is getting back to normal,.,,my sales will go back to there yearly pre vat levels they used to be, so im comfy and happy with things the way they where before lockdown and pretty soon I think it will go back there, so for now ill save the proffesional advice for further down the line....will await to see the next announcment in march and see what to do then.....ill be back for more advice then I think....in the mean time ill take a load of info from here and my current situation and let my accountant know thanks for all your input chaps n chappetts

i don't think you have understood how the threshold is applied. It's not based on the tax year, but on a rolling 12m basis. So, every month, you need to calculate your turnover for the last 12m, and, if you have exceeded the threshold, you have to register within 30 days from the end of that month. It's not optional.

strandedwonderer

omg, this just keeps getting worse!!! i do not want VAT..it will kill me,,,, im sure i read somewhere that you can apply for a one off exepmtion for going over the threshold ? and especialyl under these circumstances!!! i normally just print off all my statements at the end of each year and give all my receipts to my acocuntant, ive never done a monthly total......untill this very second im printing out everything now, and will see whats what....

Grumpy_chap

@strandedwonderer - a small amount of professional advice from an Accountant would be invaluable for you and a massive return on investment.  It will also lift a load from your shoulders, allowing you to focus on running the bike business, which is what you do best.  From what I can tell, saving this expense would be a false economy, especially as you say you do use an Accountant in any case.

macman

How will having to charge VAT 'kill you'? Your business cashflow problems have been cause by a surge in trade, not a decline. You can't expect to properly run a business turning over in excess of £85k on the back of an envelope and a once-a-year bundle of receipts given to your accountant, it needs to be attended to on a regular basis. if you are not willing or able to devote the time needed, then pay for professional advice, which you can deduct as a legitimate business expense anyway.

Yes, there is a temporary exception possibility, but you need to provide evidence to support this, and the deregistration threshold is set slightly lower, at £83K. Your accountant will be aware of all this and can deal with it for you.

"Get an exception

You can apply for a registration ‘exception’ if your taxable turnover goes over the threshold temporarily.

Write to HMRC with evidence showing why you believe your VAT taxable turnover will not go over the deregistration threshold of £83,000 in the next 12 months.

HMRC will consider your exception and write confirming if you get one. If not, they’ll register you for VAT."

strandedwonderer

VAT will kill me,,, because,, once this pandemic is over people will be going back to gyms and so on my yearly turnover will go back to how it used to be..

this suddem boom isnt permanent, i normally sell used equiptment wich i dont pay vat on purchasing so dont want to charge vat selling!! this year and maybe next will just be temp!....

as great as all these sales are,,,, there not going to be at these levels forever! i just think VAT = Bad times for me...

anway am im putting all this together and seeking proffesional help and will just have to go with what every they say!! good or bad

Grumpy_chap

If you do register for VAT, required if the VATable turnover exceeds the threshold, then you can also deregister once the VATable turnover falls below the deregistration threshold.  An Accountant could advise you on exactly when these thresholds apply and also the mechanics involved, particularly around any rules that allow de-registration in anticipation (e.g. change of business from 'new' VATable supplies to 'used' non-VATable supplies.

Getting things wrong and risking exposure to penalties will be far worse than being exposed to VAT in the mean-time.

strandedwonderer

thanks for the info guys...and one more topic to think about..

if my stock doesnt arrive until april....and I start doing pre orders in the mext month,,

can those sales be moved to next years turnover ??, as techincally im only holding on to the money until they have received there items next tax year,,, in case of refunds and so on/// I mean there warranty doesnt start until they receive the goods! so is it any different for the monies ?

macman

It's got nothing to do with the date of warranty. Tax point would normally be the date of invoice. Once again, speak with your accountant to get proper advice.

You don't even know yet if you have reached the threshold or not.