davej2k started this topic @ 20:21 on 13/09/2006
We are a new limited company and will not be likely to reach the £61k+ VAT mark this year. Therefore do we still need to add vat onto our invoices / receipts sent to customers?
RE: VAT on invoices
JamesErwin | 13/09/2006 08:55 PM
Hi Dave,
no you don't need to worry about Vat on your Invoices until you break that threshold but If you going to be puchaseing a lot of vatable goods in your business it may still be work becoming Vat registered. Although most start ups don't bother.
Jon
RE: VAT on invoices
BrettUK | 14/09/2006 09:46 PM
Dave
Just to add to this. You need to register for VAT if you think you are near reaching the VAT limit. If you are using an accountant they will tell you when and sort it out for you. If you are doing your own accounts then keep an eye on your turnover not your profit. It’s your Turnover that adds towards your VAT limit not your profit.
In regards to charging VAT, if you are not VAT registered its illegal to charge it so please be careful.
Hope this helps.
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RE: VAT on invoices
safenet | 14/09/2006 11:59 PM
If you're selling mainly to VAT registered businesses then as long as you don't mind spending a few hours on the quarterly return then it's daft not to register for VAT as you can then claim back VAT on your expenses. When I started I was way under the VAT threshold but it was well worth registering as I was only doing B2B work rather than B2C and any VAT I had to charge them was just claimed back anyway. Helped a great deal with startup costs eg buying computer equipment, office goods, and so on.
Speak to your accountant - they will know what's best.
Cheers
Chris
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RE: VAT on invoices
JUSTINVSS | 15/09/2006 09:06 AM
Yes I agree, if your dealings are business to business then get VAT reg. its makes good sense for you, and the customer will always want to use a company that’s VAT reg so they can claim it back. It can reduce your chances of sale if your not VAT reg.
The VAT return is very easy, with the bonus of some money back when you have invested in additional equipment for the business, make good sales and yes you will owe the VAT man but invest in some equipment for the business and you will reduce your VAT bill.
What happens is you end up making steady investments to keep your VAT bill down, which is only good for your business.
Justin
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