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Vat
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Hi, please can someone tell me if I am correct!
My husband has recently become a self employed builder. I told him he can't become vat registered until he has earned over the threshold (around 64k) (not sure on exact figure)
He has just done a quote for a friend who knows his situation and they have accepted the quote, but questioned the lack of vat.. Have I advised him wrong!
Thank you
My husband has recently become a self employed builder. I told him he can't become vat registered until he has earned over the threshold (around 64k) (not sure on exact figure)
He has just done a quote for a friend who knows his situation and they have accepted the quote, but questioned the lack of vat.. Have I advised him wrong!
Thank you
Answers
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For more on marking an answer as the "Best Answer", please visit our FAQ.Morning whatwhat.... Have a look at the link below, it should help you
http://www.hmrc.gov.uk/vat/forms-rates/rates/rates-thresholds.htm#2
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I think there's a bit of misunderstanding here, Whats.
The £81,000 threshold is when registration is compulsory. You don't need to have that level of turnover to register voluntarily.
I'ts not uncommon for someone to have two businesses... one registered, and one not. The registered one is usually for dealing with businesses who like to have a VAT invoice.
The £81,000 threshold is when registration is compulsory. You don't need to have that level of turnover to register voluntarily.
I'ts not uncommon for someone to have two businesses... one registered, and one not. The registered one is usually for dealing with businesses who like to have a VAT invoice.
As TB says its your choice up to the threshold and compulsory above it.If he provides lots of materials or does work for vat registered clients then it makes good sense to register.He can claim vat back on materials, work vehicles,fuel tools etc.
He may also be considered by some clients to appear more professional when registered.On the flip side if he only works for private unregistered clients he may be at a slight disadvantage if the labour element of the project is significantly above the materials cost...as 20% will be added.Try to avoid the temptation to have one registered business and one unregistered as this will attract attention from the vat man...or woman :-)
He may also be considered by some clients to appear more professional when registered.On the flip side if he only works for private unregistered clients he may be at a slight disadvantage if the labour element of the project is significantly above the materials cost...as 20% will be added.Try to avoid the temptation to have one registered business and one unregistered as this will attract attention from the vat man...or woman :-)
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