Your Total Guide To Business

Are there benefits in being VAT registered?#AskAMS

There are generally two reasons to register for VAT:

Compulsory: When your sales exceed £85,000 in a 12 month period.

Voluntary: If registering your business for VAT will be a benefit to you (the benefit is that you can reclaim VAT paid on supplies and expenses).

If you are VAT registered, you must also charge VAT to your clients. Simple when working for VAT registered clients but it can also be problematic.

Example: A builder replaces a roof on a privately owned house.

If VAT registered, they can reclaim VAT they've paid on supplies for the job. When billing customers, they will have to charge them VAT which they cannot claim back because the customer is not registered.

If not VAT registered, they cannot reclaim VAT on supplies. However, their clients will happily also not have to pay VAT!

https://www.ams-accountancy.co.uk/blog/are-there-benefits-in-being-vat-registered/

Doubletree by Hilton Swindon (Animated Ad)

Swindon Bus Company (Love Where you Live Animated Ad 2)

Wiltshire & Bath Air Ambulance (October Animated Ad)

We recommend

What expenses are not deductible for tax purposes?#AskAMS

Here is a list of certain expenses that aren’t tax deductible – but which regularly get claimed, or questioned, by clients:

Should I set up as a Sole Trader for my new business?#AskAMS

Not necessarily, a Limited Company can result in you paying less tax and - while a Company owner might lose ...

You must register for VAT when the turnover reaches £85,000#AskAMS

You should talk to an accountant urgently! If at any point during a 12 month period, (good to review ...

How to form/start a company#AskAMS

There are a number of stages to go through – and I would recommend seeing an accountant as early in ...

Starting up as a landlord – Tax issues to consider#AskAMS

When starting up as a landlord there are a number of issues and tax implications to bear in mind:

VAT reverse charge for building and construction services#AskAMS

On 1st March 2021, the VAT reverse charge for building and construction services comes into effect for VAT registered businesses ...

What is a House in Multiple Occupancy (HMO)?#AskAMS

HMRC’s definition is “a property rented out by at least 3 people who are not from 1 ‘household’ (for example ...

ASK AMS: Depreciation and Capital Allowances

Most expenses incurred by business are written off during the year, but some relate to assets that are used for ...

New Capital Gains Tax rules on sale of Residential Properties#AskAMS

Watch out if you sell a property after 6th April 2020!

Unscrewed Systems Network (Leaderboard Ad)

Let's Talk

Are there benefits in being VAT registered?#AskAMS

There are generally two reasons to register for VAT:

Weather in Wiltshire