Vat on nucs

[Newbeeneil]

Yep your services would be subject to Vat so payable to HMRC I would have thought.
But when we set up as a Vat registered business we were able to claim the previous 4 years Vat paid on equipment……….

Thanks but TBH I don't fancy the idea of filling in another load of official forms. My yearly tax accounts are bad enough.

 

[maddydog]

Yep your services would be subject to Vat so payable to HMRC I would have thought.
But when we set up as a Vat registered business we were able to claim the previous 4 years Vat paid on equipment……….

Me too. Reclaimed £1000's back from them. As Murray said earlier it's a bit of a no-brainer as a beefarmer. Paperwork (online) pretty simple and just involves collating figures you already should have and keeping receipts However, it is all digital now and I've yet to do a return using that......

 

[Into the lions den]

Laurence from BMH mentioned VAT in his chat re building a beekeeping business. He said register early when building a business as you can claim VAT back on most equipment and don't charge on many items produced.
Unfortunately I've spent the last 5 years buying equipment when I'm not registered. Drat!

Look into it....you can claim back a considerable period prior to registration too once you register.
However, have to demonstrate it as being a business.....not too onerous as it can even be a sideline...does not have to be your main economic activity.

 

[Newbeeneil]

Look into it....you can claim back a considerable period prior to registration too once you register.
However, have to demonstrate it as being a business.....not too onerous as it can even be a sideline...does not have to be your main economic activity.

Thanks Murray,
My problem would be that many of my hive maintenance business is for private clients who would not be VAT registered and could hence not claim back the 20% increase in my fees.
Most of the ones who are VAT registered I'm passing on to other beeks so next year my T/O will be closer to £16k anyway.

 

[jenkinsbrynmair]

He said register early when building a business as you can claim VAT back on most equipment and don't charge on many items produced.
Unfortunately I've spent the last 5 years buying equipment when I'm not registered. Drat!

Doesn't matter, as long as you have the invoices you can still claim retrospectively on capital kit (I can't recall how far back), consumables is different though

 

[Into the lions den]

Thanks Murray,
My problem would be that many of my hive maintenance business is for private clients who would not be VAT registered and could hence not claim back the 20% increase in my fees.
Most of the ones who are VAT registered I'm passing on to other beeks so next year my T/O will be closer to £16k anyway.

I see. A non VAT registered business in the middle of a supply chain can indeed be a problem...everything goes up 20% in one step as tax you pay out just becomes a non refundable part of your costs, and raises your price to the customer....whereas if all are VAT registered your entire business runs on net of VAT costs...the VAT itself is then just a difference between ins and outs calculation, the actual real business is on NET figures.