Author Topic: Registering for VAT? (Read 5349 times)

Eggtastico · **Reply #15 on:** March 07, 2013, 08:05:11 AM

Re: Registering for VAT?

Reply #15 on: March 07, 2013, 08:05:11 AM

theres a flat rate vat scheme for VAT which is what I am on.
You charge the 20% vat on everything, but you cant reclaim your vat. Instead your rate might be set at 10%.
So of the 20% vat you collect on behalf of HRMC, you pay them the 10%
Photography is set to 11% (but a 1% extra discount in the first year)
http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm

Its great if you have minimum outgoings & only income. Not worth the hassle on a few hundred a year though.
What is good though, if you spent £2000 in a single invoice (can be multiple purchases), you can claim the VAT back.

Just set a sole-trader account up & invoice them in that company name.

Eggtastico · **Reply #16 on:** March 07, 2013, 08:06:55 AM

Re: Registering for VAT?

Reply #16 on: March 07, 2013, 08:06:55 AM

I would be tempted to make a complaint about her trying to defraud you & your work.
I would ask for it not to be used pending this dispute.

zpyder · **Reply #17 on:** March 07, 2013, 10:22:31 AM

Re: Registering for VAT?

Reply #17 on: March 07, 2013, 10:22:31 AM

Well hopefully I'll have the sole trader tax ref set up by the time she gets back to me with what they can do. I'll then give her that and ask for her to provide in writing the reason why they could not pay me the full £200 that was agreed upon in writing, as I'll check out the reasoning with the family accountant.

It won't make me popular but I wasn't planning on sticking around here that much longer anyway!

jammin · **Reply #18 on:** March 07, 2013, 11:48:01 AM

Re: Registering for VAT?

Reply #18 on: March 07, 2013, 11:48:01 AM

It sounds like she was confused between being registered with HMRC as a Sole Trader and being VAT registered. I can appreciate why she would have been nervous about paying your invoice if you weren't a registered Sole Trader as the Uni could well have been grilled about it by the auditors.

I know for a fact that a number of schools won't pay the invoices of Sole Traders unless they can prove that they are self employed, and this means a letter from the accountant, and in some cases, a letter from HMRC themselves.

For business purchases (eg. a 5DIII), don't forget that you can still offset it against tax (as a business expense), even if you're not VAT registered and can't claim back that 20% VAT. In fact, all activities related to running your business (eg. paying for the fuel that you use to get to a shoot, or buying Lightroom 4 etc.) can all be offset against tax.

You don't need to be VAT registered until your turnover (not profit) exceeds £77k. A word of warning though, tax inspectors are a pain, VAT inspectors are nasty.

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Author Topic: Registering for VAT? (Read 5349 times)