can someone help me understand vat please

jpwhittle

iv just registered as self employed as im setting up my own buisiness making and selling handmade goods.
i know i wont make anywhere near the tax allowance in the first few years as ill only be doing craft fairs and school fairs and things.
the thing is i need to get a vat number so i can register with jtf but how would this affect my buisiness? and how much/when would i pay out for vat purposes?
just need to get my head round this then im sorted.
thanks for any help

richt71

jpwhittle wrote: »

iv just registered as self employed as im setting up my own buisiness making and selling handmade goods.
i know i wont make anywhere near the tax allowance in the first few years as ill only be doing craft fairs and school fairs and things.
the thing is i need to get a vat number so i can register with jtf but how would this affect my buisiness? and how much/when would i pay out for vat purposes?
just need to get my head round this then im sorted.
thanks for any help

I'd advise seeing an accountant - many offer free first consultations. By registering for VAT you must charge VAT on all sales within the UK so that's an extra 17.5%. Of course you can claim VAT back on any vatable supplies or equipment for your company.

martindow

jpwhittle wrote: »

the thing is i need to get a vat number so i can register with jtf but how would this affect my buisiness?

Not sure who JTF are - a wholesaler? Often wholesalers ask for VAT numbers because they want to ensure that you are a business and not an individual trying to get a bargain. If you contact them saying you are not VAT registered at the moment and offering copies of invoices from other suppliers, business bank account, letter headings,etc. you may well find that that they will accept you on that basis.

As you are retailing you want to avoid VAT until you reach the threshold and have no choice.

kazwookie

Try here:-

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_Home

All sorts of vat advise

sutwam

Hi

I think you only have to register for VAT if you turnover more than £64,000 per year. If you register yes you can claim VAT back but on the other hand you have to charge it which would increase the price you sell your goods at.

I agree with the earlier post you should contact them and say you can provide invoices from other suppliers but are not VAT registered.

Good Luck!

richt71

sutwam wrote: »

Hi

I think you only have to register for VAT if you turnover more than £64,000 per year. If you register yes you can claim VAT back but on the other hand you have to charge it which would increase the price you sell your goods at.

I agree with the earlier post you should contact them and say you can provide invoices from other suppliers but are not VAT registered.

Good Luck!

I'm sorry but any business can be VAT registered whenever they choose regardless of turnover. However you are required by law to be VAT registered after your business have a £64K turnover.

Clare99

There's an introduction to VAT guide here:
http://www.lloydstsbbusiness.com/support/businessguides/introduction_to_VAT.asp

Bismarck

thanks Clare99...it's good to read a different source than the rather dry HMRC website!

sutwam

richt71 wrote: »

I'm sorry but any business can be VAT registered whenever they choose regardless of turnover. However you are required by law to be VAT registered after your business have a £64K turnover.

Hiya Richt71

This is true, any business can indeed register for VAT no matter what your turnover, I prolifically apologise for not making that point clearer.

richt71

sutwam wrote: »

Hiya Richt71

This is true, any business can indeed register for VAT no matter what your turnover, I prolifically apologise for not making that point clearer.

No problem. Running so many businesses I get to know things to keep HMS happy!

stokechick16

Not sure but good luck x