Help. Garages/mechanics please

[cmcardle75]

Ok

I’m not into the vat thing but if you’re claiming for all the materials against your invoice I can’t see any point in claiming the vat.

You will also be charging vat and to a private customer that’s a 20% extra they will have to pay on the Labour.

It could mean the difference between getting the job or not.

Just my take on it.
I’ve gone out of my way not to be vat registered in the past, legally of course.

It depends on your clientele. If you're under the limit and selling to private UK individuals, best not to register. If you're B2B, or international, you'll be more competitive registered.

 

[Silver-Fox]

It depends on your clientele. If you're under the limit and selling to private UK individuals, best not to register. If you're B2B, or international, you'll be more competitive registered.

As I said I don’t know the ins and outs of vat.

We were talking about a one man band direct to a client so charging vat may well put the client off.

 

[HKF]

Ok

I’m not into the vat thing but if you’re claiming for all the materials against your invoice I can’t see any point in claiming the vat.

You will also be charging vat and to a private customer that’s a 20% extra they will have to pay on the Labour.

It could mean the difference between getting the job or not.

Just my take on it.
I’ve gone out of my way not to be vat registered in the past, legally of course.

Because if you pay out more in purchasers than you charge, you get a refund at the end of the quarter.

 

[mitzimad]

if your buying and selling goods being vat registered is good as a sole trader providing a service its best to be out of it if you can stay below the thresholds i was in and out of vat several times during the years since it started always voluntary and when it suited me all totally legal of course

 

[HKF]

if your buying and selling goods being vat registered is good as a sole trader providing a service its best to be out of it if you can stay below the thresholds i was in and out of vat several times during the years since it started always voluntary and when it suited me all totally legal of course

A sole trader providing a service is still buying and selling; buying equipment, consumable etc and selling the service (labour etc.) and any related products (filters, paint, oil etc. depending on the trade). Anyone in business buys and sells.

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[Silver-Fox]

Because if you pay out more in purchasers than you charge, you get a refund at the end of the quarter.

Doesn’t that mean you’re 80% down of what you’ve paid out as you can only claim back 20% or am I missing something

 

[HKF]

Doesn’t that mean you’re 80% down of what you’ve paid out as you can only claim back 20% or am I missing something

I'm sorry, I don't understand what you mean. If you buy goods to the value of £3500 + VAT @ 20% (£700) = £4,200, at the end of the quarter you claim the £700 back on your return. As long as your markup on goods/services is more than you pay for them, you're in profit.

 

[Silver-Fox]

I'm sorry, I don't understand what you mean. If you buy goods to the value of £3500 + VAT @ 20% (£700) = £4,200, at the end of the quarter you claim the £700 back on your return.

You said if you paid out more in purchases than you charged.

So if you have unsold items you only claim the vat back.
This means whatever is unsold 80% of this your down by.

Sorry if I’m not explaining my self.

Anyway I still avoid vat

Also you just become a revenue collector for you know who.

 

[Nanniemate]

Aren't wipers a free re-test item? They should have allowed you to do it yourself, not done the work without your permission.

They didn't I leave it there and tell them to sort anything that needs doing I trust them completely the costs are usually my estimation. They still call me if there's an issue. She is straight as it comes getting the car is is nearly as difficult as getting a doctor's appointment

 

[HKF]

You said if you paid out more in purchases than you charged.

So if you have unsold items you only claim the vat back.
This means whatever is unsold 80% of this your down by.

Sorry if I’m not explaining my self.

Anyway I still avoid vat

Also you just become a revenue collector for you know who.

Sorry, that might be my mistake. I meant, if you paid out more in VAT for purchase than the VAT you charge your customers. So, if you've paid £1,000 in purchase VAT but you've only charged your customers £700 in VAT, you'd claim £300 refund for that quarter

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