Should i Register For VAT ?
Discussion
I only deal B2B, and the majority of my client base is VAT registered. ( thats a yes vote )
But in the outgoing department, all i have is the running of my van, premises, and staff wages. thats it!
would it be worth my effort registering now instead of waiting 6mths when i will HAVE to?
But in the outgoing department, all i have is the running of my van, premises, and staff wages. thats it!
would it be worth my effort registering now instead of waiting 6mths when i will HAVE to?
If you are going to have to, then the answer is yes, otherwise there could be an intervening period where you will be liable for the VAT
and unable to claim it back.. Why wait?
As long as your turnover is going to be over the threshold (within a 12 month rolling period) it makes no sense not to. I would also suggest looking at flat VAT, as this can simplify things (for you, but possibly not for your accountant - although watch out as the forms were and probably still are incorrect for flat VAT).
Your accountant should be recommending that you register for VAT IMHO.
and unable to claim it back.. Why wait?
As long as your turnover is going to be over the threshold (within a 12 month rolling period) it makes no sense not to. I would also suggest looking at flat VAT, as this can simplify things (for you, but possibly not for your accountant - although watch out as the forms were and probably still are incorrect for flat VAT).
Your accountant should be recommending that you register for VAT IMHO.
I started my own business last year. First thing to do is get an accountant and run through your business plan. The best money I ever spent. Not only have they cut my like for like tax almost in half (comapred to when I was an employee), they've also saved me nearly a grand from a 6 year old tax demand I got this year.
A good accountant is vital imho to getting the most out of your business. Mine costs less than a grand a year and they've already saved me more than £6K in tax compared to last year. That's value for money!
A good accountant is vital imho to getting the most out of your business. Mine costs less than a grand a year and they've already saved me more than £6K in tax compared to last year. That's value for money!
Plotloss said:
First things first, get an accountant, ASAP.
It's not just the savings part. The forms and accounts are highly complex - especially if you have employees. I wouldn't even think of doing my own payroll calculations.The good thing about having an accountant look after this stuff is they will take a fraction of the time you would and get the result right.
CDP said:
It's not just the savings part. The forms and accounts are highly complex - especially if you have employees. I wouldn't even think of doing my own payroll calculations.
The good thing about having an accountant look after this stuff is they will take a fraction of the time you would and get the result right.
I have to say I disagree. HMRC send you a CDROM that does the calculations for you, we pay our technicians on a base salary+share of profits basis, and sorting their payroll takes next to no time. Even on the hard calculation of comparing the losses in turnover/profit from my time doing admin rather than primary work vs how much it would cost extra to have the accountant do it, we save money by running payroll in-house. The good thing about having an accountant look after this stuff is they will take a fraction of the time you would and get the result right.
It worked out roughly equal on the same calculations for book-keeping and running the VAT calculations - but we still do that ourselves because it means easy access to the management information we want in the format we want it.
The accountant is a vital resource when it comes to reference questions and tax return time, but personally I regard having a good handle on the business's finances as an important part of proper management.
YMMV of course,
Tol
Although, Anatol, you're a multi-talented fellow and not everyone is that bright, or wants to be that deeply involved in a desperately tedious subject.
I was just wondering if there's an 'online accountant' where you just stick the numbers in boxes and it tells you what to pay and when.
I was just wondering if there's an 'online accountant' where you just stick the numbers in boxes and it tells you what to pay and when.
SystemParanoia said:
But in the outgoing department, all i have is the running of my van, premises, and staff wages. thats it!
But you're still paying VAT on the first two and if you were VAT registered you could claim it back (and fuel, if you use a lot). Don't you have buy in any materials - what are you carrying in the van?Edited by Simpo Two on Saturday 26th July 23:45
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