Selling from home works!

[oliver90owner]

Thats good then....wish someone would tell them that.

Some do have more than just the odd hive or two!

You cannot register for VAT if your business sells only VAT exempt goods

If you sell enough honey, there will likely be wax sales and possible nuc sales. But I bet the VAT man would like to apportion business costs to vatable and non vatable portions!

Regards, RAB

 

[Adam]

Without public liability insurance (and who among us have that!)

I think all BBKA members have insurance for selling honey products. On that basis a vast number of us have public liability insurance, indeed, its the only reason some people join?

Adam

 

[dc197]

Yes, I think we have £5 million liability.

 

[Brian Bush]

I sell at the door and have done for the past three years. 12oz jar for £3.20. I also sell to my work colleagues. We moved into the head office earlier this year. My advert on the notice board has led to sale of 50 jars so far. 5 today! At home SWMBO says that many of her customers are returnees from this and previous years. A friend who runs a business in a village 5 miles away sold 6 jars yesterday from a basket display. Keep the middlemen and officials out at all costs

 

[dc197]

Honey is classified as a zero rated basic foodstuff so no VAT need be charged on the sale of honey (although I bet there are some wrinkles to do with processed honey that I don't know about).

Ah yes, of course. The Integrated Tariff gives "natural honey" its own chapter (0409.00.00) and makes no reference to it being a different commodity if it's processed or unprocessed. So basic processing should not attract VAT, because it is still honey. If you process it and turn it into something else that is not exempt from VAT (e.g. face cream, mead, etc) then it would attract VAT at the rate for the new product.
Well, that's how it works for importing goods, I assume the basic categorisations apply for domestic production.

 

[barratt_sab]

Ah yes, of course. The Integrated Tariff gives "natural honey" its own chapter (0409.00.00) and makes no reference to it being a different commodity if it's processed or unprocessed. So basic processing should not attract VAT, because it is still honey. If you process it and turn it into something else that is not exempt from VAT (e.g. face cream, mead, etc) then it would attract VAT at the rate for the new product.
Well, that's how it works for importing goods, I assume the basic categorisations apply for domestic production.

I knew there was a reason I didn't know about it!

 

[Rosti]

I think all BBKA members have insurance for selling honey products. On that basis a vast number of us have public liability insurance, indeed, its the only reason some people join? Adam

Adam, you could well be right - and I hope you are! I perhaps wrongly assumed that the BBKA only covered me for third party injury caused directly by the bees rather than also as a result of my causing injury through poor food safety associated with the sale to, and consumption of honey by, a third party. Assumed I say because I have never read the small print

ASSUME - 'Makes an ASS out of U and ME'

If we are covered for honey sales as well under BBKA insurance then I am a much more relaxed beek, thats for sure! Good news. Do others have the same view on the scope of the insurance? (not being lazy, I am in Brussels, my BBKA insurance in in York )

 

[RoofTops]

You cannot register for VAT if your business sells only VAT exempt goods - I think that it is key for these purposes that honey is zero rated (i.e. subject to VAT at 0%) rather than VAT exempt (i.e. not subject to VAT at all).

There is a difference between exempt and zero rated. VAT is charged on honey but at 0%. Sounds daft I know but honey sales would therefore be included in your VAT return as goods sold - but zero VAT collected. This of course makes no difference to the price but exempt means it is not covered by VAT, such as bank charges and insurance.

Therefore you can register for VAT if all you sell is honey.

 

[barratt_sab]

There is a difference between exempt and zero rated. VAT is charged on honey but at 0%. Sounds daft I know but honey sales would therefore be included in your VAT return as goods sold - but zero VAT collected. This of course makes no difference to the price but exempt means it is not covered by VAT, such as bank charges and insurance.

Therefore you can register for VAT if all you sell is honey.

Indeed - and the VAT you pay doesn't have to be apportioned between non-Vatable supplies (unrecoverable) and vatable supplies (recoverable)