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Any business tax experts?


ferguson_tom
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I am looking into setting up a little business dealing in vintage vehicles but have a few questions regarding VAT and the best route to list the company. The plan is to start off in effect as a broker and then once settled with a bit of a reputation move onto being a dealer as well. If anyone could spare me 5 minutes on the phone or happy to answer a couple of questions over email that will be much appreciated.

Thanks, Tom

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Only when your business attracts a turnover of £85000+ per annum do you have to register for and charge vat. Your type of service is vattable. I presume that you are going to run as a private limited company.

Edited by 243deer
missed s
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6 minutes ago, ferguson_tom said:

Okay thanks so until the company turns over £85k and i have to become VAT registered i dont have to charge VAT even though its a Vattable service?

Pretty sure i will go down the ltd company route.

Correct. You can be penalised for allowing the turnover to pass this so best to register as soon as it looks like it will over any 12 month rolling period.

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Surely these are second-hand goods? The VAT has already been paid. :hmm:

 

Anyway, there’s a HMRC margin scheme which allows you to only pay VAT on your profits. Or charge commission as others have said and apply VAT to that (same sort of thing, I suppose).

Simplest way, of course, is to keep your turnover below the threshold.

Lord “Bloke down the Pub” Seagrave

 

 

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10 minutes ago, lord_seagrave said:

Surely these are second-hand goods? The VAT has already been paid.

 

Anyway, there’s a HMRC margin scheme which allows you to only pay VAT on your profits. Or charge commission as others have said and apply VAT to that (same sort of thing, I suppose).

Simplest way, of course, is to keep your turnover below the threshold.

Lord “Bloke down the Pub” Seagrave

 

 

The original goods may or may not be Duty paid, but his services are separate from this....

From bloke just back from friends party involving lots of booze, music, swimming pool and hmmmm - young women ( sorry ladies, I know it’s not PC to post such a comment, blame on the Frenchies plying me with too much booze- would have stayed but driving back to Blighty tomorrow) 

Edited by Jaymo
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There used to be a good incentive for low-cost business (consultancy for example) who had business customers who were themselves VAT reg'd to register for VAT even if they were below the T/O threshold due to the Flat Rate Scheme. The Govt. made that a lot less attractive last year so now many people have either de-registered or not bothered. 

Edited by Thunderbird
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Thank you for the advice everyone its much appreciated. After a busy weekend things are looking rather positive and all of a sudden coming together quite quickly. My friend who owns his own small business has given me details of his accountant who has help him quite a lot and specialises in these sort of size businesses.

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