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Discussion in 'Managing Your Business' started by Honestcleaning, Sep 12, 2012.
Anyone on here gone through VAT registration? Just wondering how tough it is.....
I have been vat reg for about 10 years i have had no problems but my wife is a accountant so it does help a bit
Did you have to go Vat reg because of turnover or was it voluntary?
I've been managing our VAT returns for the last year and it's not too much work to be honest. We've got an accountant that deals with PAYE and company accounts but I do VAT myself.
As long as you keep up to date with it and don't try to do it all at once, it's not much work.
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.
Why would window cleaners be VAT reg??
You think adding 20% to your price would it not put cutsies off?
As soon as you turn over £70k plus you have to be VAT registered............
there is nothing you can do as soon as you hit £77k you have to add vat
give me a ring after 6.30pm if you need help my wife deals with the vat she can answer any questions
Apologies....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.