VAT Registration - Pro’s & Cons’s?

[AKAMOTORSLTD 0]

Hello All,

I have been reading these forums for years and always found great advice on here. I am currently in our second year of trading and we are still fairly small so not required to be VAT Registered just yet.

We spend a lot of money on VAT, Fuel, expenses, parts, bills etc and it seems like a great idea to get VAT Registered and start claiming that money back.... however I would like to hear from some experienced dealers who have been through this rather than listening to the usual “ Yeah course it’s worth it you can claim all your VAT Back”.

 

I personally do not beleive mr tax man would give anything back without taking it with the other hand.

 

any advice would be appreciated and I look forward to some funny and probably sarcastic responses!

[sparky 274]

20 minutes ago, AKAMOTORSLTD said:

Hello All,

I have been reading these forums for years and always found great advice on here. I am currently in our second year of trading and we are still fairly small so not required to be VAT Registered just yet.

We spend a lot of money on VAT, Fuel, expenses, parts, bills etc and it seems like a great idea to get VAT Registered and start claiming that money back.... however I would like to hear from some experienced dealers who have been through this rather than listening to the usual “ Yeah course it’s worth it you can claim all your VAT Back”.

 

I personally do not beleive mr tax man would give anything back without taking it with the other hand.

 

any advice would be appreciated and I look forward to some funny and probably sarcastic responses!

Quality wumming. Lovely stuff.

[MrC 142]

You'll be out of pocket. 

The End

[justina3 518]

Just run a previous two quarters and all the answers you need will be in there, it is almost impossible for anyone to answer the question with specific info only you have that said  I would bet Mrc will be proved correct. 

[Mark101 536]

If you're running a proiftable business, being VAT registered will cost you money but ultimately you'll have no choice. If you're not profitable, then being VAT registered may save you a few quid but what is the point? If you're not profitable, it is all academic.

Personally, the more VAT I am forced to pay (as well as other taxes) the happier I am. Why? because my nett income increases too.

[Row 71]

The vat man is like the bookmaker, they always win.

[Rory RSC 596]

Skools r out

[CRW 73]

1 hour ago, Mark101 said:

Personally, the more VAT I am forced to pay (as well as other taxes) the happier I am. Why? because my nett income increases too

That's always been my approach.  Its a relief when the VAT comes out a bit lower than normal, although its also a reality check that the last quarter wasn't great.  

Also, AKA aren't VAT registered, but are LTD, have a website up and running and stock cars up to £10k.  Not required to be VAT registered?? After 2 years? I was VAT registered within 12 months starting with a pot of £7k.

Edited February 15, 2020 by CRW

[justina3 518]

22 minutes ago, CRW said:

That's always been my approach.  Its a relief when the VAT comes out a bit lower than normal, although its also a reality check that the last quarter wasn't great.  

Also, AKA aren't VAT registered, but are LTD, have a website up and running and stock cars up to £10k.  Not required to be VAT registered?? After 2 years? I was VAT registered within 12 months starting with a pot of £7k.

Lol you have to love the power of the internet. 

[AKAMOTORSLTD 0]

6 hours ago, CRW said:

That's always been my approach.  Its a relief when the VAT comes out a bit lower than normal, although its also a reality check that the last quarter wasn't great.  

Also, AKA aren't VAT registered, but are LTD, have a website up and running and stock cars up to £10k.  Not required to be VAT registered?? After 2 years? I was VAT registered within 12 months starting with a pot of £7k.

We have just begun our 2nd year trading and fortunately it seems didn’t meet the threshold for being VAT Registered.

Thanks for the reply’s that has cleared a bit up for me and you can be sure if I am required to be VAT Registered I will certainly do that. I asked the question to make sure I was going about this the correct way rather than taking an educated guess.

9 hours ago, MrC said:

You'll be out of pocket. 

The End

Thanks for this lol!

[Screenman 47]

Out of interest, how many cars did you sell in the last 12 months?