VAT number

tightauldgit

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 nothing to do with VAT

You don't HAVE to register for VAT until you go past £85k turnover for the business in 12 months, but you can choose to register at any time. Once you register you have to charge VAT on you sales, and can claim back VAT paid on purchases. VAT returns are generally quarterly. 

There;s also requirements now about keeping electronic records and generating tax returns  digitally. 

tightauldgit

martindow said:

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.

For a UK supplier yes, but for an overseas supplier I think the complication is that if they sell to a non-VAT registered bsuiness then they are going to have to charge UK VAT and remit it to HMRC. If you aren't doing a lot of business to the UK then it might not be worth the effort for them.