Honestcleaning
Well-known member
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Anyone on here gone through VAT registration? Just wondering how tough it is.....
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My confusion on the topic is point of registratio, we have traded just below the threshold for 2yrs. I split my business so run 1 domestic and 1 commercial. My commercial ltd company is currently below the threshold for registration but we're currently quoting a job worth £21k a year which would take it over the threshold, hence we then have to start charging VAT.
What happens then is we were to drop below the threshold at some point? Also at the point of registration doe all work YTD then become liable for VAT (hence I owe 20% on work already done that I haven't charged VAT on)?
I'm pretty savvy with most things, I do all our PAYE myself etc but I'm just struggling to grasp this.
thats what i mean about giving the wife a ring tonight each to there own, i dont do a lot just get the money lol. but i am very sure that you would be vat on both businessApologies....threshold now £77k, but as soon as you go over that you have to register. The job we're quoting will take my Ltd co over the threshold.....
My issue is...... does that then mean you have to pay VAT on the previous monies taken that you didnt charge VAT on as you we under the threshold until that point.....
For commercial work, it doesnt make any difference to custy as they will claim back the VAT.
On domestic you then become liable for 20% more tax (but you would have to be going some to do £77k domestic.) Commercially you can soon hit £77k. Like i said above, we're currently quoting a job worth £21k a yr, so it soon stacks up....
I run 2 businesses, 1 domestic cleaning. 1 commercial cleaning, so it is the commercial co that will go VAT registered.
I dont think it would be, there to different companysthats what i mean about giving the wife a ring tonight each to there own, i dont do a lot just get the money lol. but i am very sure that you would be vat on both business
Just made a quick call back home if you are a sole trader weither it is 2 or 3 companys when you get to £77k that is the thershold for vatI dont think it would be, there to different companys
i was told that 77k is the limit to become vat registered any one can become vat registered its just more technical, any one who considers this move in my banks opinion is that if you mess up on anything that it can have big consequences etcMy confusion on the topic is point of registratio, we have traded just below the threshold for 2yrs. I split my business so run 1 domestic and 1 commercial. My commercial ltd company is currently below the threshold for registration but we're currently quoting a job worth £21k a year which would take it over the threshold, hence we then have to start charging VAT.
What happens then is we were to drop below the threshold at some point? Also at the point of registration doe all work YTD then become liable for VAT (hence I owe 20% on work already done that I haven't charged VAT on)?
I'm pretty savvy with most things, I do all our PAYE myself etc but I'm just struggling to grasp this.