Delivery charge

vozzy76

I sell 2nd hand furniture and add a delivery charge to my listing which is seperate from the cost of the item...my question is does that delivery charge have to be added to my turnover as it is quite alot and although I receive the delivery cost it is then passed onto my courier 

eskbanker

What's the context, i.e. are you self-employed or operating as a limited company, or something else?

Alderbank

vozzy76 said:

I sell 2nd hand furniture and add a delivery charge to my listing which is seperate from the cost of the item...my question is does that delivery charge have to be added to my turnover as it is quite alot and although I receive the delivery cost it is then passed onto my courier 

Welcome to the forum.

Yes.

Turnover is the total revenue (the money coming into your business) from your core business activities, such as selling products or services.
How much of that revenue you choose to pay your courier (and any other provider) affects your profit, but is irrelevant in terms of turnover.

VAT is not income, because you just act as unpaid tax collector for the Government so don't include VAT in turnover.

HMRC defines turnover as the total amount of money a business receives from the sale of goods and services, minus discounts and VAT.

vozzy76

Im just a self employed sole trader not vat registered...adding the delivery cost to my turnover takes it over the vat threshold 

noitsnotme

vozzy76 said:

Im just a self employed sole trader not vat registered...adding the delivery cost to my turnover takes it over the vat threshold 

I'm pretty sure that means you now need to register for VAT.  Do you have an accountant you can ask?

vozzy76

No but I'm in the process of trying to get one 

vozzy76

I just had a good year last year but this year won't be as much so seems pointless going VAT registered for last year plus I didn't charge customers VAT so looks like I'll be expecting a big bill 😞

MyRealNameToo

vozzy76 said:

I just had a good year last year but this year won't be as much so seems pointless going VAT registered for last year plus I didn't charge customers VAT so looks like I'll be expecting a big bill 😞

If you arent VAT registered then it would be illegal to charge them VAT. If you are VAT registered then you would be charging them VAT, assuming its not an exempt product, but you may choose to hold your prices therefore reduce your margin. 

Technically if its a 0% VAT product, rather than exempt, you are charging VAT even if its £0.

Given you are selling secondhand goods you could apply to apply to use the marginal scheme, but this assumes you arent paying VAT when acquiring your stock. 

NorthYorkie

vozzy76 said:

I just had a good year last year but this year won't be as much so seems pointless going VAT registered for last year plus I didn't charge customers VAT so looks like I'll be expecting a big bill 😞

Yes, plus penalties. It sounds as if you SHOULD have registered for VAT for 'last year'. The fact that you did not charge your customers VAT in that year is irrelevant. You remain liable to be registered until you are de-registered, either by application or by HMRC decision.