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VAT question for new business
leepatston
Posts: 13 Forumite
in Cutting tax
If I set up a business and win a job for £50k which is under the vat threshold, I don’t charge the customer vat as not vat registered.
then later in the year win another job for £50k, now this puts me over the threshold so charge the customer VAT etc and go VAT registered.
Question is would I have to now pay VAT on my first job?
Thanks, Lee
then later in the year win another job for £50k, now this puts me over the threshold so charge the customer VAT etc and go VAT registered.
Question is would I have to now pay VAT on my first job?
Thanks, Lee
0
Comments
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No. See: https://www.gov.uk/vat-registration/when-to-register
Whether it might make sense to register from the start will depend on whether your customers can recover the VAT you charge, and whether you incur sufficient input tax.0
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