How does Vat work?

[Moco]

do you have to pay it even if you buy online? i know U.S. doesnt it we buy online, and does it count if you buy from an overseas online site?

 

[floppybootstomp]

Just about everything in the UK attracts VAT (Value added Tax). It's currently at 17.5%

Books, magazines and most food stuffs are exempt.

But, funnily enough, tampons are not.

VAT was originally introduced as a tax on 'value' as in valuable, goods.

So, a female going through her normal biological cycle each month needs to buy some 'luxury goods' to deal with this?

It's total crap but we're so conditioned to it we accept it meekly.

If you're a VAT registered company, however, you add VAT to your invoices and pay the Goverment the tax each month, but the beauty is anything you buy, you can claim the VAT back from the Goverment.

So the best thing to do is set up a company, even if it's fictitious, and claim all your VAT back.

Not a lotta people have sussed this yet.

But there again, if you're an employee, it's not that simple.

 

[ChristopherP]

So the best thing to do is set up a company, even if it's fictitious, and claim all your VAT back.

Not a lotta people have sussed this yet.

No because the Tax people inspect what you have bought and make sure that it's not being taken advantage of. It has to be for company use and not individual...

 

[floppybootstomp]

No because the Tax people inspect what you have bought and make sure that it's not being taken advantage of. It has to be for company use and not individual...

Yes, because it's really surprsising what they will accept as being for the company.

I've never been inspected or, for that matter, had any of those restaurant 'Entertaining clients' bills questioned.

But there again, I'm small fry, it's the big boys they're after, mostly.

I think I better shut up

 

[Moco]

lol, good idea there floppy, never rat yourself out... but thanx for the info on taxes, you know how it effects international trade? or online?

 

[ChristopherP]

Aparently my dads company had the books examined on more than one occasionally and they questioned anything that was the slightest bit suspicious...

 

[floppybootstomp]

Aparently my dads company had the books examined on more than one occasionally and they questioned anything that was the slightest bit suspicious...

IF they decide to give you a visit, then Gawd help ya, those guys are harsh.

They have more powers than the police, Customs and Excise, they are to be feared.

I do know of several people who've had a visit, got a pretty hard time.

In six years of trading as a Limited Company though, we never had a visit. I'm a sole trader now, sort of, just one business partner, shortly to go Limited and register for VAT, so who knows?

 

[muckshifter]

Me ... I'm a "Partnership" (Nettie, my wife, is my partner) VAT registered.

Keep your 'earnings' below a certain threshold and gain other benefits. (class 4 NI exempt, as an example)

Before jumping into Business I went on a 6 week seminar ... it was the best thing I did. I learnt very quickly how to "use" the system.



Buy a can of Coke and get a VAT receipt ... in fact, I get a VAT receipt for everything I buy.

Joe Public ... are the only people that pay VAT

 

[muckshifter]

do you have to pay it even if you buy online? i know U.S. doesnt it we buy online, and does it count if you buy from an overseas online site?

Beware "Import Duty" ...

 

[bodhi]

As a registered company do you not need to submit tax returns every three months or something?

 

[floppybootstomp]

As a registered company do you not need to submit tax returns every three months or something?

VAT returns, yes.

Regular tax returns - no. That's once a year.

 

[bodhi]

Vat registered people are just unpaid tax collectors for the government.

 

[ChristopherP]

:d