sole trader plus vat

mckeever | 19:10 Wed 24th Jan 2007 | Business & Finance

3 Answers

I f i was to set up a business as a sole trader, would it best to be vat registered or not?

Vat querie

PAYE employee and sole trader

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Oneeyedvic

What sort of business is it?

If you are dealing with businesses, then it may well be worth going VAT registered, but if you are dealing with the general public (eg a builder, electrician etc) then don't go VAT registered unless you go over the VAT threshold (around �55k per year turnover.

mckeever

Question Author

I will be buying from business but selling to the public. this is where i have the dillema. if i sold an item for �117.50 without vat, would i then have stand the vat myself. meaning i only make � 100 for the sale?

Oneeyedvic

That is correct - so it is not normally worth it.

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