VAT number

LolekUK

Just a quick question

As one of the unlucky ones, our fixed mortgage deal ended in January, since then we went on to tracker as that was the best option end of last year (rather than fixing for 6%+).

Anyway, I have registered with HMRC as self employed (as I have few ideas to make some extra cash hopefully). I have received my UTR number but I need a VAT number (to register with another company I wish to sell their products online). Is the certificate (with VAT number) still on it's way to me or do I have to register it differently under my HMRC account? 

Whatever I read, I think that's all I needed to do and just need to patient and wait for the certificate which may take 30 days but I thought I will double check rather than wasting a month waiting.

Thanks

p00hsticks

Have you really looked into whether you want to do this ? It sounds as if you are not really sure as yet exactly what you are going to be doing / selling, and being VAT registered may not be necessary or desirable.  
 
You get a VAT number by registering for VAT - it's a separate registration process to registering as self-employed
Register for VAT: How to register for VAT - GOV.UK (www.gov.uk)

You don't need to register for VAT unless you expect your turnover to be more that £85,000. 
You can register voluntarily if you want, but it then means that you have to charge VAT on the goods or services you sell (if VAT is applicable) which can make them 20% more expensive to the customer..... 

I'd explore your options a bit more fully before taking the plunge.....

Savvy_Sue

You don't have to register for VAT until your TURNOVER (not profit) is above something like £85k. There are sometimes advantages in voluntary registration, even if your turnover is less than that. 

But it's not something you'll be sent unless you ask for it. 

DullGreyGuy

LolekUK said:

Just a quick question

As one of the unlucky ones, our fixed mortgage deal ended in January, since then we went on to tracker as that was the best option end of last year (rather than fixing for 6%+).

Anyway, I have registered with HMRC as self employed (as I have few ideas to make some extra cash hopefully). I have received my UTR number but I need a VAT number (to register with another company I wish to sell their products online). Is the certificate (with VAT number) still on it's way to me or do I have to register it differently under my HMRC account? 

Whatever I read, I think that's all I needed to do and just need to patient and wait for the certificate which may take 30 days but I thought I will double check rather than wasting a month waiting.

Thanks

Many businesses dont have a VAT number because they dont have a high enough turnover to require one. Unless you are selling 0% rated goods or exclusively selling to other VAT registered companies then being VAT registered is a bad thing and something people put off as long as they can.

Are you sure the company mandates a VAT number and it's not an optional field to complete only if you are VAT registered? I'd think about if you really want to be charging your customers 20% more which then goes to HMRC just to be able to access this company.

tightauldgit

As others have said you'll only get a VAT number when and if you register for VAT - there's no need to at this stage though. 

LolekUK

Thank you all for taking your time to respond. 

I was going to be a re-sellers of services/products of a company that requires a VAT number to be registered with them (as a reseller). I will speak to them and see if any other options are available.

tightauldgit

LolekUK said:

Thank you all for taking your time to respond. 

I was going to be a re-sellers of services/products of a company that requires a VAT number to be registered with them (as a reseller). I will speak to them and see if any other options are available.

Are they based overseas? If so i think its the probably the complication of them having to collect VAT and remit to HMRC but thats a bit of a minefield i never really got my head around

LolekUK

tightauldgit said:

LolekUK said:

Thank you all for taking your time to respond. 

I was going to be a re-sellers of services/products of a company that requires a VAT number to be registered with them (as a reseller). I will speak to them and see if any other options are available.

Are they based overseas? If so i think its the probably the complication of them having to collect VAT and remit to HMRC but thats a bit of a minefield i never really got my head around

Ah, that must be it! The company/companies I was looking at are both worldwide with HQs in other countries. I assume that's it. I will have to re-think what to do next... Thanks again.

tightauldgit

LolekUK said:

tightauldgit said:

LolekUK said:

Thank you all for taking your time to respond. 

I was going to be a re-sellers of services/products of a company that requires a VAT number to be registered with them (as a reseller). I will speak to them and see if any other options are available.

Are they based overseas? If so i think its the probably the complication of them having to collect VAT and remit to HMRC but thats a bit of a minefield i never really got my head around

Ah, that must be it! The company/companies I was looking at are both worldwide with HQs in other countries. I assume that's it. I will have to re-think what to do next... Thanks again.

Or just get A VAT number and hold off until it arrives

LolekUK

Just to confirm (apologies for the trivial question), with the basics:
A. self-employed, get first £1000 VAT free, and not obliged to do VAT return if £1000 not reached,
B. when I apply for the VAT number (only needed for £85000 turnover, but can have it without the said turnover), don't get the first £1000 VAT free and I'm oliged to do VAT returns annually,

Thanks

martindow

LolekUK said:

Just to confirm (apologies for the trivial question), with the basics:
A. self-employed, get first £1000 VAT free, and not obliged to do VAT return if £1000 not reached,
B. when I apply for the VAT number (only needed for £85000 turnover, but can have it without the said turnover), don't get the first £1000 VAT free and I'm oliged to do VAT returns annually,

Thanks

No, the £1000 is not related to VAT.  A business that has a turnover of under £1000 is not required to pay tax on whatever the profit may be.  If they had chosen to register for VAT they would have to complete VAT returns and charge VAT on sales no matter how small the turnover.

Have you contacted the company you are interested in to see what they would accept?  Quite a lot of companies want evidence that they are dealing with a business rather than an individual wanting to buy a fair amount.  Clearly a VAT number shows this, but they will often accept other things like trade references or a website for instance.

You need to think long and hard before registering for VAT - probably best to talk to an accountant in the first place.  Many offer free initial consultations.