vat help

[moogwai]

hi guys...just after some of your knowledge on vat and when and if i need to be vat registered.
i want to know how much do i have to earn before i have to become vat registered? and is vat based on the profit i make or the turnover i do?
say if my turnover for the year was £80,000 but my profit was only £25,000 do i have to pay vat?
cheers.

 

[secret squirrel]

Not 100% but I think its done on turnover not profit and I think your in the bracket to pay the VAT etc.......

Probably not what you wanted to hear

Sorry

 

[moogwai]

Not 100% but I think its done on turnover not profit and I think your in the bracket to pay the VAT etc.......

Probably not what you wanted to hear

Sorry

that was just a scenario......i don't think i'm anywhere near that yet!! lol

 

[oldplumber]

its based on turnover for the preceding 12 months and when that hits around £67k you must register for vat. if you leave it to the end of the tax yr and find your turnover is over 67k then fines will follow or at least you will have to pay the vat owing, ie what you would have charged your customers if they had to pay vat on your bills, which can be very painful, you want to go back to a builder after 6 months and ask for vat owing, not good

 

[Winston]

Go to a accountant, but as I understand the threshold to be vat registered is 100K.

 

[Puddle]

It is now 68K see link but accountant will advise

HM Revenue & Customs: When to register for UK VAT

 

[moogwai]

thanks for your help guys,i'll have a look at my books and see what's goin on.

 

[WHPES]

Best if you can stay under £67k if you are close. Getting customers to buy their own suites etc can help keep you under. If you go over it's more hassle and expense with accountants etc.