ferguson_tom Posted August 31, 2018 Report Share Posted August 31, 2018 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 Quote Link to comment Share on other sites More sharing options...
CharlieT Posted August 31, 2018 Report Share Posted August 31, 2018 HMRC publishes a list of business type codes (SIC codes) here https://www.vat-registrations.co.uk/help/sic-codes Pick one that suits your classification best. Perhaps 45.11 would suit your needs. Quote Link to comment Share on other sites More sharing options...
LondonLuke Posted August 31, 2018 Report Share Posted August 31, 2018 The title mentions tax but the question seems to be about VAT....what is the issue, may be able to help depending on what you need to know. Quote Link to comment Share on other sites More sharing options...
ferguson_tom Posted August 31, 2018 Author Report Share Posted August 31, 2018 The simple plan is to offer a sales service and if it sells i would be paid a commision. The main question is for this sort of service would i have to charge VAT. Quote Link to comment Share on other sites More sharing options...
243deer Posted August 31, 2018 Report Share Posted August 31, 2018 (edited) 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 August 31, 2018 by 243deer missed s Quote Link to comment Share on other sites More sharing options...
ferguson_tom Posted August 31, 2018 Author Report Share Posted August 31, 2018 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. Quote Link to comment Share on other sites More sharing options...
LondonLuke Posted August 31, 2018 Report Share Posted August 31, 2018 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. Quote Link to comment Share on other sites More sharing options...
lord_seagrave Posted August 31, 2018 Report Share Posted August 31, 2018 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 Quote Link to comment Share on other sites More sharing options...
Jaymo Posted August 31, 2018 Report Share Posted August 31, 2018 (edited) 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 August 31, 2018 by Jaymo Quote Link to comment Share on other sites More sharing options...
Thunderbird Posted September 3, 2018 Report Share Posted September 3, 2018 (edited) 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 September 3, 2018 by Thunderbird Quote Link to comment Share on other sites More sharing options...
ferguson_tom Posted September 3, 2018 Author Report Share Posted September 3, 2018 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. Quote Link to comment Share on other sites More sharing options...
scobydog Posted September 3, 2018 Report Share Posted September 3, 2018 Can't help with the tax thing, just to say good luck with your new enterprise.? Quote Link to comment Share on other sites More sharing options...
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