Flat Rate VAT Registration

Accounts, Finance, Legal & Franchising information here
gumball
Newbie
Posts: 8
Joined: Thu Sep 22, 2011 2:49 pm
Area Covered: n.i.
Machines Used: tower vending
Referred by?: google

Re: Flat Rate VAT Registration

Post by gumball »

If I register for the flat rate and buy no machines this year then the way I understand it is I will be paying 4% of my earnings to the vat man , but if I didn't register then I can claim back all vat that I pay and pay 20% of earnings .What's best ?? Also does the vat be paid before any earnings are taken into account for personal tax ? Lastly now that I have registered for vat and claimed back for new van and 5 machines when can I deregister ?
Thanks for any info
User avatar
Coin Operated Group
Site Admin
Site Admin
Posts: 3286
Joined: Tue Jan 13, 2009 9:41 am
Area Covered: Birmingham, West Midlands
Machines Used: Arcade Machines, Quiz & Big Vendors
Referred by?: myself
Location: Birmingham

Re: Flat Rate VAT Registration

Post by Coin Operated Group »

are you ltd or sole trader?
Regards Matt

www.easyvend.com
User avatar
Coin Operated Group
Site Admin
Site Admin
Posts: 3286
Joined: Tue Jan 13, 2009 9:41 am
Area Covered: Birmingham, West Midlands
Machines Used: Arcade Machines, Quiz & Big Vendors
Referred by?: myself
Location: Birmingham

Re: Flat Rate VAT Registration

Post by Coin Operated Group »

also if you deregister for vat you have to pay back vat dependent on any assets or stock? you have when you do so. All a bit hazy , that's why I have an ex vat inspector doing my books
Regards Matt

www.easyvend.com
gumball
Newbie
Posts: 8
Joined: Thu Sep 22, 2011 2:49 pm
Area Covered: n.i.
Machines Used: tower vending
Referred by?: google

Re: Flat Rate VAT Registration

Post by gumball »

sole trader,ex vat inspector doing mine too think he would know more about the flat rate
Vendition Ltd
Coin Op Group Master
Coin Op Group Master
Posts: 444
Joined: Wed Aug 05, 2009 9:15 am
Area Covered: chichester-eastborne-crawley
Machines Used: bulk tower - tubz vending/salysol and pringles
Referred by?: heard about this through the grape vine
Location: Sussex

Re: Flat Rate VAT Registration

Post by Vendition Ltd »

Now that I am VAT registered under the flat rate scheme, if I sell 20 machines to someone will I pay the flat rate vat rate on the sale of the machines (4%) and will I have to include VAT on the invoice I provide him and will this be 20%?

Just slightly confused
User avatar
Coin Operated Group
Site Admin
Site Admin
Posts: 3286
Joined: Tue Jan 13, 2009 9:41 am
Area Covered: Birmingham, West Midlands
Machines Used: Arcade Machines, Quiz & Big Vendors
Referred by?: myself
Location: Birmingham

Re: Flat Rate VAT Registration

Post by Coin Operated Group »

You pay 20% vat on purchase and charge 20% vat when selling them , you can claim the vat back only if it's an asset or smashers totalling £2000 or more .


You pay hmrc 4% of your total sales . Don't forget 1st year discount so you only pay 3% .
Regards Matt

www.easyvend.com