TOP 5 VAT MISTAKES (UK)

VAT is complex, but we see a pattern of common mistakes. In this video Dan runs you through the common ones so you can avoid costly mistakes.

Topics include:

Does insurance have VAT on
Do train tickets have VAT on
Do I claim VAT on wages
Do I need a receipt to claim VAT
Is the VAT flat rate scheme a good idea
What are the main VAT codes
What is zero rate VAT code
What is reduced rate VAT
How the VAT flat rate scheme works

..... and more!

You can see more about what we get up to on the following:



#selfemployed​ #VAT​ #HMRC

[Man-xjzu]

Please do video on VAT on takeaway business. Also please best software to use for an amateur person, just for self use .
Thanks

[olimpiu-suciu]

what if my company is vat registered and have mixed vat incoices and non vat invoices, not all work providers paid vat my services? thank you

[oibab]

Great video. Going back to point 2; If a VAT registered re-seller, purchased items from a non-VAT reg supplier, to re-sell on Amazon, what is the correct VAT calculation for this transaction? Would the VAT registered re-seller simply have to pay 20% on the sale price (as there is no VAT to reclaim off of the purchase)?

[hannahkris]

If a limited company buys service from a sole trader who is not VAT registered, obviously the limited company would not pay VAT and therefore as long as they dont claim any VAT for this service but only show as expense paid to the sole trader, they would be correct ? ie no VAT to pay or claim back.

[mirjanatrifkovic]

Great educational video AGAIN, thanks for all your work, PS if you have any courses, please do let me know, very much interested. Much appreciated all your advice, simple yet very effective and they do have a great deal of effect on "OUR" work

[Enigmo]

Say a business buys a fixed asset for £4500 and paid £750 in VAT for that, how does that VAT be reclaimed? Is it reclaimed in one go like usual expense or does being fixed asset change that?

[matthewcharles]

Fantastic video! I was hoping you can help me out - we're selling clothing on behalf of a client and a new business so its very difficult to gauge revenue. I'm thinking of registering for VAT as we start because I don't want to hit the VAT threshold and be hit with a heft bill (this would also be difficult to work out how to pay as our client would be expected to pay a portion also).

My question is, when you hit the threshold, do you have to pay VAT on the previous 12 months? Or does it start from then on?

[ilkbaharkunduzu]

When I establish a new company to sell handmade good on amazon, amazon takes vat but NOT on my behalf. We should handle VAT. My question is the product I sell ii not in UK at point of sale so I will send from non EU country Turkey, after every order because the products are all custom. I will declare the invoice that I have taken VAT and my VAT registration number etc on the package. However, will there be any other custom duty by HMRC? Thanks

[Mrhaydentv]

Hi I have a question regarding floating vat?
I sell bundles and hampers and some of my products are 0% items in the entire bundle or hamper, but occasionally the box may be £1.15. Is this still 0% classed as, or do you need to class the entire bundle as 20% because of this one item?

As far as I was aware, you can class the bundle as 0% as long as the box is worth less than £1, how ever I them found out about floating vat, which means if a box or packaging is essential (like mine) then it is classed as floating vat and the entire bundle even if the box is over £1 I can class this as a 0% item?

Thanks!

[Jack-ozig]

I have recently ordered 500 units of a diary that I have published from china. They did not charge me VAT. I am selling them on amazon, Do I still owe HMRC VAT for buying these 500 units? I am struggling to understand if the company charges me the VAT, or if I have to contact the HMRC myself and tell them of my transaction and pay any VAT that I owe on this order.

[ruancardeal]

Hi. Can you answer me a question? I am a self employed ( driver ). Can I save some money if I register myself to VAT and start charging (20%) the company I work for? If i register, I still have to send the tax return every year and the VAT return each 3 months, or just VAT return.. ( sorry about my english, not so good yet )

[shidoshi]

hi im about to sell on amazon uk im not vat registered. do i need to be ? i will only be selling from clearance stores items and flipping the items on amazon. so its only a side hustle to make 300 too 400 a month .. many thanks

[iftikharhussain]

V r doing small business on amazon and below 85k threshold. However being new v mistakenly deposited VAT on total revenues. So v made 2 mistakes one v got our company registered being below 85k and second paid more than 500 gbp as vat on total revenue. Ur advice is appreciated if u kindly tell us how v can reclaim vat and how u can help us in this matter and what r ur charges. Best regards

[AmieDibba]

in order to claim a reclaim for up to 4 years ago, where it says "From what date do you want the business to be registered?" do I need to backdate up to the 4 years or is it that I can reclaim up to 4 years regardless of the date of registration?

Also, if you are a small business considering voluntary registration and you are looking to reclaim VAT, does it make sense to voluntarily register if there isn't much to reclaim (if the reclaim option is a key driver in registration), if so what amount would you say is just not worth it?

Thanks!!

[oibab]

Great video. Going back to point 2; If a VAT registered re-seller, purchased items from a non-VAT reg supplier, to re-sell on Amazon, what is the correct VAT calculation for this transaction? Would the VAT registered re-seller simply have to pay 20% on the sale price (as there is no VAT to reclaim off of the purchase)?