VAT

[Clean zero]

Do you have to produce a invoice to every customer

 

[ched999uk]

I don't think so unless they request one. That's how Amazon do it, if you want a VAT invoice you have to request one! - I'm assuming you are talking domestics not commercials?

 

[Clean zero]

Yes domestic

 

[ched999uk]

Yes domestic

If you use something like Squeegee or CleanerPlanner they are capable of sending vat invoices automatically when you mark a job as completed.
It might be wise to consult an accountant as HMRC are very strict especially with VAT.

 

[Clean zero]

?

 

[spruce]

At the fuel station, I get asked every time if I want a receipt. It's the same at the till at Sainsburys. Both places are VAT registered.

I'm not VAT registered, but I produce an invoice and statement for every commercial job we do, bar 2. These invoices obviously do not show VAT. I'm sure we have lost a number of commercial jobs over the years as we aren't VAT registered. I'm thinking of council jobs for one.

 

[johnny bravo]

This is the same problem when looking to buy a van . VAT or No VAT .

 

[JEM]

This is the same problem when looking to buy a van . VAT or No VAT .

Yep, I've been looking to buy a van for a few months and the VAT ones have been good vans but I can't justify paying an extra 2k on a 10k van for no reason. so it took me ages to find a good one without vat! actually bough one yesterday after months of looking.
I also wonder if some traders charge vat but don't give invoices to someone that isn't vat registered like me and it's extra money in their pocket!

 

[ched999uk]

Yep, I've been looking to buy a van for a few months and the VAT ones have been good vans but I can't justify paying an extra 2k on a 10k van for no reason. so it took me ages to find a good one without vat! actually bough one yesterday after months of looking.
I also wonder if some traders charge vat but don't give invoices to someone that isn't vat registered like me and it's extra money in their pocket!

Must admit that I have no idea how HMRC keeps track of what vehicle has finally had the Vat paid and not reclaimed. Although I think everyone who buys a vehicle pays the vat and then those that are vat registered claim it back. Not sure what would happen if a vehicle that has had the vat claimed back was sold and the vat wasn't charged - I assume the seller would be liable for the vat on the sale but no idea how HMRC actually track it all, maybe it's just done on trust?

There is also something about second hand vehicles and a dealer paying vat on their margin but not on their costs to get it ready for sale. It's all weird to me....

 

[spruce]

Must admit that I have no idea how HMRC keeps track of what vehicle has finally had the Vat paid and not reclaimed. Although I think everyone who buys a vehicle pays the vat and then those that are vat registered claim it back. Not sure what would happen if a vehicle that has had the vat claimed back was sold and the vat wasn't charged - I assume the seller would be liable for the vat on the sale but no idea how HMRC actually track it all, maybe it's just done on trust?

There is also something about second hand vehicles and a dealer paying vat on their margin but not on their costs to get it ready for sale. It's all weird to me....

VAT: Buying And Selling A Second-hand Commercial Vehicle - Tax Insider

www.taxinsider.co.uk

 

[matt1458]

When we started up I repurposed a VAT reg’d company I already had, which was solely business to business so it didn’t matter. being VAT reg was great for reclaiming on startup costs, but soon became a pain having to lose 20% on every residential job just to be competitive with the guy down the road, so we voluntarily de-registered as we weren’t hitting the compulsory threshold.

Not personally aware of any commercial job we’ve lost due to not being VAT reg, if you’re tendering for jobs though I know we do probably lose out due to the annual turnover question, which is a vanity figure anyway, profit margin is what makes you a stable business.

If you’re looking at going VAT reg’d don’t forget you can reclaim on goods up to 4 years before you registered and services up to 6 months..

If however the question is just

Do you have to produce a invoice to every customer

Then yeah, do things properly!

 

[P4dstar]

I used to record all of our monthly sales in one lump on Quickbooks. Since we went VAT registered we record individual sales receipts for every transaction. It's tedious some days but actually only takes 10-15 mins to do. If any domestic customer who paid us cash or card on the day asks me for a VAT invoice I can either print or email one to them on the spot. Commercial stuff is different of course as they all want time to pay. Our direct debit customers all have a copy of an invoice sent by Squeegee. This is only relevant to them though, the sale is recorded as a sales receipt on Quickbooks who do the MTD stuff and manage the return.

 

[Windowcleaningfleet]

No you dont need to invoice every customer, just make sure you factor in an extra 20% of the cost on each quote you give.
Also make sure you never pay your VAT bill late( you make 4 payments per year)
I once paid my bill 2 days late... and i received a letter than i had paid 2 days late... they let me off because it was my first time.. but they warned me if it happens again they will fine me.
Another window cleaner I know got fined £600 for paying his VAT bill 4 days late.... VAT is a serious, once u go VAT reg u will see business in a whole different way and it will also make you work extra harder.

Good luck

 

[JEM]

Must admit that I have no idea how HMRC keeps track of what vehicle has finally had the Vat paid and not reclaimed. Although I think everyone who buys a vehicle pays the vat and then those that are vat registered claim it back. Not sure what would happen if a vehicle that has had the vat claimed back was sold and the vat wasn't charged - I assume the seller would be liable for the vat on the sale but no idea how HMRC actually track it all, maybe it's just done on trust?

There is also something about second hand vehicles and a dealer paying vat on their margin but not on their costs to get it ready for sale. It's all weird to me....

My understanding is the vat gets passed on if the person previously paid it and claimed it back but if I bought one that had VAT I'd have to pay it but when I sold it I couldn't claim it back so the next purchaser wouldn't have VAT to pay
So I think where some dealers there are some VAT free I guess because the previous seller wasn't VAT registered and didn't claim it back

 

[matt1458]

My understanding is the vat gets passed on if the person previously paid it and claimed it back but if I bought one that had VAT I'd have to pay it but when I sold it I couldn't claim it back so the next purchaser wouldn't have VAT to pay
So I think where some dealers there are some VAT free I guess because the previous seller wasn't VAT registered and didn't claim it back

As far as I’m aware when a dealer buys a vehicle and takes it into stock, either as PX or from auction, you’ll pay VAT when you buy it. If the dealer is selling SOR / on behalf of the owner, you’ll see it advertised as no VAT, because the dealer is essentially acting as a 3rd party selling you the van from the current owner who isn’t VAT reg.

From experience they’re often advertised as “viewing by appt only” as in they need to arrange the owner to get the vehicle to them for you to view.

I guess they then charge a broker type fee to the person selling the van for facilitating the sale

 

[matt1458]

As far as I’m aware when a dealer buys a vehicle and takes it into stock, either as PX or from auction, you’ll pay VAT when you buy it. If the dealer is selling SOR / on behalf of the owner, you’ll see it advertised as no VAT, because the dealer is essentially acting as a 3rd party selling you the van from the current owner who isn’t VAT reg.

From experience they’re often advertised as “viewing by appt only” as in they need to arrange the owner to get the vehicle to them for you to view.

I guess they then charge a broker type fee to the person selling the van for facilitating the sale

Pretty sure there’s no rules on charging / reclaiming only once, all the time the person owning the goods / services they’re selling are vat reg then vat applies, unless as above they’re acting as a middle man, which in theory is the best of both worlds

 

[P4dstar]

As far as I’m aware when a dealer buys a vehicle and takes it into stock, either as PX or from auction, you’ll pay VAT when you buy it. If the dealer is selling SOR / on behalf of the owner, you’ll see it advertised as no VAT, because the dealer is essentially acting as a 3rd party selling you the van from the current owner who isn’t VAT reg.

From experience they’re often advertised as “viewing by appt only” as in they need to arrange the owner to get the vehicle to them for you to view.

I guess they then charge a broker type fee to the person selling the van for facilitating the sale

The chap who sold me my second van told me that if you see 'no vat' it's because the dealer didn't pay vat when purchasing the vehicle. For example buying a pick up truck from an individual. He said the bulk of them are ones bought from travellers.

 

[P4dstar]

As I understand it, unless the vehicle has 0 value remaining, you must charge vat on it when you sell it on. In all honesty this is a complete waste of a conversation. Anyone who is vat registered will have an accountant. The best thing to do is call them and get the advice. My poor accountant gets several of these phone calls every year from me.

 

[matt1458]

The chap who sold me my second van told me that if you see 'no vat' it's because the dealer didn't pay vat when purchasing the vehicle. For example buying a pick up truck from an individual. He said the bulk of them are ones bought from travellers.

Lol did that guy have a yellow three wheeled reliant robin and a lanky brother? If only that was how it worked. But yeah agreed non conversation no idea how it got into the technicalities of used cars

 

[P4dstar]

Lol did that guy have a yellow three wheeled reliant robin and a lanky brother?

If he wasn't charging me vat I would have thought it was a blag haha. I have no idea about the technicalities of what he was saying and may have completely misunderstood to be fair.

 

[matt1458]

If he wasn't charging me vat I would have thought it was a blag haha. I have no idea about the technicalities of what he was saying and may have completely misunderstood to be fair.

Either way it’s a win!