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VAT rising to 17.5% again :(


RapidSpeeds
27-11-2009, 19:38
Nice one Myatu, on the ball once again!

Note: For anyone who is in Scotland try: Business Gateway

Ashley
27-11-2009, 18:12
Nice one mate. Greatly appreciated!

Myatu
27-11-2009, 17:46
http://www.hmrc.gov.uk/vat/ -- You likely want to follow "VAT forms, rates, thresholds and Notices" first.

Also look at http://www.businesslink.gov.uk/ -- You can also schedule an in-person meeting through them (which I had done only 2 weeks ago). Wealth of info!

Ashley
27-11-2009, 15:35
Is there a link to information on VAT?

I am a start up and launching an MP3 store later in 2010 and currently we make about 4,000 PA which is less than what we spend on costs currently.

I would like to register my business, trademark, and get a bank account etc but can't find any info, just SEO'd websites that talk about making money through Google.

RapidSpeeds
27-11-2009, 13:26
34days and TAX goes back to 17.5%

That's going to get rid of my hangover on 1st Jan.

tim2718281
08-10-2009, 20:41
Quote Originally Posted by monkey56657
Paying VAT is not quite that perfect. VAT can only be no cost to you if you intend not to make any profit. You lose 15/17.5% of your profit with VAT.. but only profit... the rest is even.
No, you lose income.

My car mechanic found this out; he used to work 7 days a week from home, but the council imposed a restriction preventing hom working on Sundays. That took his income below the VAT registration level, so he deregistered - and found he was making just as much money working six days a week instead of seven, because he was no longer paying one-seventh of his income to the VAT man.

freshwire
08-10-2009, 18:38
Paying VAT is not quite that perfect. VAT can only be no cost to you if you intend not to make any profit. You lose 15/17.5% of your profit with VAT.. but only profit... the rest is even.

tim2718281
08-10-2009, 17:52
Quote Originally Posted by dansgalaxy
Also don't have to pay/charge VAT (as a company) if you are earning below (i think) 65,000

When earning under 65K Vat Registration is voluntary - Has some benefits as means you can get interest of the extra 17.5% revenue etc before paying...
There is no extra revenue.

If you are not VAT-registered, and you charge 100 for something, the 100 is yours.

If you are VAT registered, and you charge 100 for something, about 15 of that 100 goes to the VAT man; however, if you yourself have purchased goods and services from VAT-registered suppliers, you can use the VAT element on the invoices instead of paying the VAT man in cash.

marks
06-10-2009, 13:06
apart from the questions of UK company legislation, when we sell to the UK, we have to charge VAT. Companies or individuals always have to pay VAT.

And yeah, on 1 January 2010, VAT comes back to where it was: 17.50%

Myatu
05-10-2009, 07:05
Quote Originally Posted by DedicatedPros
you only pay tax for orders created by client's in the same state as you, not country or even region.
... provided you do not have a physical establishment in the client's state, that is. That's why Delaware is such a great state, not only is corporate tax low, there's no VAT (tax) in that state. Just had to throw that bit in about the US

DedicatedPros
04-10-2009, 22:04
Quote Originally Posted by dansgalaxy
Was Just throwing out some info about UK VAT.
Me too It's still very confusing, I love the system they have in the US; you only pay tax for orders created by client's in the same state as you, not country or even region. And 22% (for Poland, other countries have lesser VAT) tax is a very hefty sum.

gigabit
04-10-2009, 21:38
Well i learnt something...

dansgalaxy
04-10-2009, 20:58
Was Just throwing out some info about UK VAT.

DedicatedPros
04-10-2009, 20:16
Quote Originally Posted by dansgalaxy
Also don't have to pay/charge VAT (as a company) if you are earning below (i think) 65,000

When earning under 65K Vat Registration is voluntary - Has some benefits as means you can get interest of the extra 17.5% revenue etc before paying...
Yes, but I meant people that are required to pay VAT when buying from VAT registered companies.

If you're a company the requirement to become a VAT payer becomes voluntary when the company's revenue is low, but that depends on each individual country.

dansgalaxy
04-10-2009, 19:18
Also don't have to pay/charge VAT (as a company) if you are earning below (i think) 65,000

When earning under 65K Vat Registration is voluntary - Has some benefits as means you can get interest of the extra 17.5% revenue etc before paying...

makno
04-10-2009, 17:33
where do i register?

freshwire
03-10-2009, 23:51
VAT is very confusing! But good news In monkeyland there is no VAT.. Come help build a great nation

DedicatedPros
03-10-2009, 20:46
All VAT paying companies registered in the EU are required to pay VAT for all revenue coming from clients in the following countries:

Austria
Belgium
Bulgaria
Cyprus
Czech Republic
Germany
Denmark
Estonia
Greece
spain
Finland
France
Hungary
Ireland
Italy
Lithuania
Luxembourg
Latvia
Malta
The Netherlands
Poland
Portugal
Romania
Sweden
Slovenia
Slovakia

You are VAT exempt if you are a VAT payer yourself but your company is not registered in the same country as the company you're buying from. VAT is not a British tax, therefore it's charged more internationally.

layman
03-10-2009, 20:01
Question, how come resellers charge VAT if they sell to out of country customers, VAT can't be charged for out of country customers as far as I know.
Please explain.

dansgalaxy
11-09-2009, 12:06
O god... not more of a headache please

My suppliers cost enough as it is!

Myatu
01-09-2009, 12:34
Yeah, the 15% was only supposed to boost the economy while it was in the pits. Well, it's still in the pits, but anyway

For businesses, what's going to be interesting as well, is the cross-border VAT that's being introduced throughout the EU next year: http://www.hmrc.gov.uk/VAT/cross-bor...anges-2010.htm

LOL. It says it's supposed to make things simpler. But in the very next paragraph, it says "businesses will need to make fundamental changes to their current VAT accounting and reporting processes". So which is it? Simple or complex?

unclebob
01-09-2009, 12:05
http://business.timesonline.co.uk/to...cle6816708.ece