SHOULD I BE VAT REGISTERED?

Wondering if you business should (or needs to!) be VAT registered? Well watch on.

In this video Dan runs through some tips of when this might be a good idea, and when you don’t have a choice!

Topics include:

Should you register for VAT early
What types of business should VAT register
When do you have to VAT register
How to VAT register
Can you claim VAT back
How to claim VAT back
When is it not a good idea to VAT register
Making Tax Digital for VAT
VAT book-keeping

..... and more!

You can see more tax and business tips on the following:

Author: Dan Heelan of Heelan Associates

#accounting #Tax #VAT

[Bacrenfencing]

I have had to register recently due to hitting the threshold and it is something that really stressed me out because I imagined suddenly becoming hypothetically 20% more expensive. To cut a long story short, I started sending out quotes as I normally would and treated them as VAT registered. I was genuinely surprised that I still won most of these jobs even with VAT added. I then analysed my normal way of quoting compared to that of quoting with VAT and by the time I had taken into account all the VAT that I could claim back on materials etc, my actual pricing was only around 6-8% higher than if I was not registered.
I think there is a lot of smoke and mirrors with VAT and basically, if you want to grow a business, then you really do need to register.
I know everyone's situation id different, but in my line of work, materials constitute a large portion of my turnover, so VAT registration has been a good thing (I think) but we will see going forwards.
At least now I don't have the constant worry of going over the 85K and can actually concentrate on growing my turnover unhindered.

[holland]

What you can do is form a limited company, when you get near the threshold fold the company and start another hence no registration

[graemekowalewicz]

Thank you for such a easy to follow explanation!! This is something that I've just been looking into and your video helped massively!!

[cruthaighprints]

I’m not near the threshold yet but just wanted to say how thankful I am for all these videos. They’re so helpful and I’m sure so many others find them useful too. Do you offer online accountancy services or is it face to face? Thanks

[nathanstake]

I started a B2B business in October and I charged my client 20% VAT as I thought that VAT had to be paid and collected from the get go even without a VAT number…. What would be the best advice as what to do about that mistake to avoid legal issues?

[karl_TeamBnks_P]

Hello. I’m looking to open a small retail business. Public sales only. I doubt I’ll hit the threshold. But am required by my potential supplier to be vat registered. If below the threshold can I not charge vat. Even if registered? I assume I’ll be paying vat on my goods from my supplier!? Thanks

[thefatcrust]

I operate in hot food so need to charge VAT on hot food when consumed on premise but not when mobile trading outdoors. f I VAT register, do I need to apply VAT to my outdoor sales as well as my indoor ones?

[MrZOMBIE]

so if a self employed person makes less then £85, 000 a year say for example they earned £15, 000 they don't need to worry about charging for VAT to customers

[shandeepgurung]

I am importing medication for self use should i get a vat no for the parcel to be delivered . The company that i am ordering for is asking for vat no

[hollielaw]

I see this video was made 2 years ago, has any of this changed? Eg the £85, 000 threshold x

[jolantawnuk]

Great video! Thank you for this channel!

[llisntcoolj]

Hi Dan.

Question regarding vat.
Do you have to make a "profit" on a supply only Job?
I've a customer that wants to order £4800 worth of materials inc vat (basically I get a good discount from my supplier)
Could I get him to pay upfront, invoice him for £4k+vat, then pay my supplier the £4800.
Meaning it's cost me no cash outlay, then reclaim the £800 on my quarterly return? Or would hmrc frown upon this?

I was just thinking it's £800 for the sake of 10 minutes work raising an invoice and purchase order, that I otherwise wouldn't get.

[manicminer]

Can you reclaim 3 years fuels if vat registered?

[leknvisuals]

Hi so I have a trainer customisation business. I have to hit 85, 000 yet but very close. all my products are £150 per pair for the shoes so here is the process. I go to adidas and pay £70 for the trainers. I pay VAT included in those shoes. I then use their shoes and customise them into designs and sell them for £150. how does VAT work for me and my business. I use £15 worth of products per pair.

[graemeanderson]

Question regarding my situation which you dont cover. I own a property in Scotland, I am UK citizen but work and pay taxes in USA. i have a Short term let license on the property with my local UK property manager named as manager. She lives in same town as the property. The turn over is less than 20000 pounds a year and profit after all bills are paid and payments to property manager are made leaves about 4000 pounds profit. i have filed self assessment tax returns and incur no UK taxes as i am under personal allowance but do pay US taxes on profits. Question is do I need to be VAT registered or not, from what inread as long as manager is in UK I am treated as a british entity and the 85k threshold applies for VAT registration. Is this correct? the property manager is not VAT registered as she has less than 90k turnover in her businesses.

[umeransari]

Thank you for your knowledgeable video. I have some questions which I need some guidance for selling inside France.
1. Is a company registered in France (with Non-EU based owner) which does not cross the domestic selling threshold of 82, 800 EUR obliged to register for VAT?
2. Is company registered in France (with Non-EU based owner) obliged to appoint a Fiscal Representative?
3. Could a French company not registered for VAT claim the input VAT paid during imports and the VAT paid on services received in France?
4. Can a French company not registered for VAT get an EORI number to import goods?

[Harlzxoxoxo]

Hello.I am being charged for vat seller fees on etsy. £5.17 is taken from a £8.59 order? Please and thanks

[mahmudulhassankhan]

I'm not near threshold but got notice thru ebay uk (Im non-uk), so how can settle it?

[smartwealth]

hi, if i start my new company and buy goods to resale from a vat registered business will i be able to claim the vat back for the amount i paid to supplier on the goods i bought

[ajsuk]

Hey Dan, great resource, thank you!
May I ask if there's a best Registration Date to choose if the business is trading but isn't yet profitable yet, and wants to claim back VAT on purchaes? (ie: Has already been making sales(obviously not charging VAT yet) but has made start-up purchases(paying vat))? TIA