Discussion
Excuse the stupid question, but can anyone register for VAT? I mean, I don't sell anything, I'm not self employed (but I could register myself if needed), but what's stopping me registering and claiming VAT back on my new £2.5k Macbook for example?
Someone's going to come along with a logical answer I'm sure, as it can't be that easy!
Someone's going to come along with a logical answer I'm sure, as it can't be that easy!
audi321 said:
Excuse the stupid question, but can anyone register for VAT? I mean, I don't sell anything, I'm not self employed (but I could register myself if needed), but what's stopping me registering and claiming VAT back on my new £2.5k Macbook for example?
Someone's going to come along with a logical answer I'm sure, as it can't be that easy!
You need to have, or will have, VATable supplies (sales).Someone's going to come along with a logical answer I'm sure, as it can't be that easy!
You, have to be trading either as a company or self employed, then you have to charge VAT on your income, issue VAT invoices.
Nothing to stop you starting a 'company' and then claiming all the VAT back on the start up costs, then closing the company. Just be ready for the VAT man to come knocking!
Nothing to stop you starting a 'company' and then claiming all the VAT back on the start up costs, then closing the company. Just be ready for the VAT man to come knocking!
megaphone said:
You, have to be trading either as a company or self employed, then you have to charge VAT on your income, issue VAT invoices.
Nothing to stop you starting a 'company' and then claiming all the VAT back on the start up costs, then closing the company. Just be ready for the VAT man to come knocking!
When you say 'company' do you mean Ltd? I wouldn't want to do this, but sole traders can be VAT registered can't they?Nothing to stop you starting a 'company' and then claiming all the VAT back on the start up costs, then closing the company. Just be ready for the VAT man to come knocking!
audi321 said:
megaphone said:
You, have to be trading either as a company or self employed, then you have to charge VAT on your income, issue VAT invoices.
Nothing to stop you starting a 'company' and then claiming all the VAT back on the start up costs, then closing the company. Just be ready for the VAT man to come knocking!
When you say 'company' do you mean Ltd? I wouldn't want to do this, but sole traders can be VAT registered can't they?Nothing to stop you starting a 'company' and then claiming all the VAT back on the start up costs, then closing the company. Just be ready for the VAT man to come knocking!
On what grounds would you be making the VAT reclaims?
In order to register for VAT you must supply them with details of your trading activity -
the date it commenced
the type of VAT supplies it intends to make
the likely turnover (sales) figure in its first 12 months of trade
If you fail to supply them with any of this information, they won't register you.
In order to register for VAT you must supply them with details of your trading activity -
the date it commenced
the type of VAT supplies it intends to make
the likely turnover (sales) figure in its first 12 months of trade
If you fail to supply them with any of this information, they won't register you.
Well my idea was.......register as self employed as an IT Consultant or something like that on the HMRC site, and then as VAT registered on the VAT site. Buy said Macbook as the tools needed to complete my 'work'. Claim the VAT back (over £400) and then tell them it didn't work out and 'de-register'? No sales made, so no invoices to produce and no VAT to pay?
I assume my actual income (employed) doesn't mess this up?
I assume my actual income (employed) doesn't mess this up?
Terminator X said:
Whilst you chaps are technically correct the likelihood of HMRC chasing down the OP must be so small as to be virtually zero? You takes your chances etc though OP. Even if they did catch up surely you'd then just pay the vat?
TX.
Wanna bet?TX.
If your first few returns bear no relationship to what you told them on your VAT Application - they will be after you pretty promptly.
How exactly do you plan to 'claim the VAT back', OP?
The traditional approach (speaking as an IT Contractor, in business for 20yrs, VAT registereg all that time) is for you to submit a VAT return via the online HMRC service totalling your invoices for the period, the VAT charged, VAT being claimed, you paying over the net differnce.
If your top line is a big fat zero but you are asking for money back, dontcha think this might ring a teeny few alarm bells!?
The traditional approach (speaking as an IT Contractor, in business for 20yrs, VAT registereg all that time) is for you to submit a VAT return via the online HMRC service totalling your invoices for the period, the VAT charged, VAT being claimed, you paying over the net differnce.
If your top line is a big fat zero but you are asking for money back, dontcha think this might ring a teeny few alarm bells!?
PurpleTurtle said:
How exactly do you plan to 'claim the VAT back', OP?
The traditional approach (speaking as an IT Contractor, in business for 20yrs, VAT registereg all that time) is for you to submit a VAT return via the online HMRC service totalling your invoices for the period, the VAT charged, VAT being claimed, you paying over the net differnce.
If your top line is a big fat zero but you are asking for money back, dontcha think this might ring a teeny few alarm bells!?
Yes, they issue a rebate if you have paid more out than you have charged in your invoices. Obviously you have start up costs with a business??The traditional approach (speaking as an IT Contractor, in business for 20yrs, VAT registereg all that time) is for you to submit a VAT return via the online HMRC service totalling your invoices for the period, the VAT charged, VAT being claimed, you paying over the net differnce.
If your top line is a big fat zero but you are asking for money back, dontcha think this might ring a teeny few alarm bells!?
audi321 said:
PurpleTurtle said:
How exactly do you plan to 'claim the VAT back', OP?
The traditional approach (speaking as an IT Contractor, in business for 20yrs, VAT registereg all that time) is for you to submit a VAT return via the online HMRC service totalling your invoices for the period, the VAT charged, VAT being claimed, you paying over the net differnce.
If your top line is a big fat zero but you are asking for money back, dontcha think this might ring a teeny few alarm bells!?
Yes, they issue a rebate if you have paid more out than you have charged in your invoices. Obviously you have start up costs with a business??The traditional approach (speaking as an IT Contractor, in business for 20yrs, VAT registereg all that time) is for you to submit a VAT return via the online HMRC service totalling your invoices for the period, the VAT charged, VAT being claimed, you paying over the net differnce.
If your top line is a big fat zero but you are asking for money back, dontcha think this might ring a teeny few alarm bells!?
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