receipts re claiming against tax on vehicle purchase.

[transitgeoff]

vat is cool well if your earning anything it is cos you cant legally have much round you without it if your in business, i think the threshold is around £54k and thats turnover not profit so add your bought and sold together, it dont take long to make it more than £54k, and if like me your into commercial vehicles everyone you buy has vat so not being registered is false economy, also if you went vat registered you can claim back the vat on all your stock, whenever you bought it when i first registered i had a few years worth of stock so they reinbursed me for the lot

[FredTransit]

Yeah Geoff but you are buying and selling, so what you charge cancells what you spend. If you aren't buying much and are charging a lot (on a service say that costs you nothing but your time), you end up being an unpaid tax collector. If you buy a van off a private individual, they can't charge VAT cos they aren't registered, yet if you are selling that same van as a VAT registered company you have to charge it. I am just saying don't VAT register until you have to, if you are any kind of service industry you will just end up paying out and getting nothing back. And I don't just mean VAT, the accountancy cost are higher for accounts including VAT, also penalties are higher if your accounts are late, not to mention if you use the VAT as cash flow you have to find it when it's due. VAT is the same if you have been in business one week or ten years, once you are registered, unlike income/company tax as was already mentioned.

[transitgeoff]

i was always scared of vat and wanted to avoid it, but then i realised everything i bought i was swallowing the vat, no looking back now, it actually makes sence to register, especially as you say Fred if your buying and selling.

[thunderider]

im a courier and i just become vat registered as i sub work out i was paying a fortune paying vat to other vat reg couriers,but i use at least a grand amonth on fuel,ive also gaind 1600 quid claiming vat back on 2 vans ant the recent replacement engine ect..its hard work tho...

[ME]

I do roughly the same work as Him (Rob) ^^^^ Only better than Him

VAT Reg is the way to go. at the Moment i pay 74p per Litre of Diesel once the VAT is claimed back Anything i buy for my Company which has VAT on it I claim the Vat back. ie Hotel rooms,food,van repairs /maintenece,interenet connection the list is never ending

Darren

[Titus]

I am in the service industry, and have to say VAT is a pain in the a****
I have just set up another business and will not be joining the vat club as it makes my labour 17.5% more than the next guy for the same work, all depends what you are doing, I get my customers to pay for materials up front, so i can pay at the merchants for them, this avoids building my turnover upto the VAT threshold, as most materials don't go through the books.
Geoff.