Tax and the small business (UK)

I have recently set up a small web-based business in the uk.

I understand form other sources that I do not have to register for and pay VAT until my turnover exceeds 60k. Never going to happen.

Thing is, my supplier are charging VAT on the product they send me. I am therefore being taxed on the price I pay them for the product. Is there a way I can claim this back, or is it a loss I have to accept?

Are they right to charge this?

Are there any other things I need to consider with regard to tax?

Thanks,

Matt

 

you can only claim VAT back on things you buy from suppliers if you register for VAT yourself.

If your not turning over 60k then dont register, i dont know all the ins and outs but you should register with the inland revenue for self employed income tax, keep all your receipts. and get a good accountant.

 

Thanks for the info. I'm not strictly self-employed, I work a full time job and this is a 'bit on the side'

At present, any profit from it is staying within the business- I have yet to make a penny personally. Do I still need to register?

Also, how do I find an accountant, and how much does one cost? My turnover for the last 3 months is under 600 GBP so don't know I can justify it.

 

Hello

Even if your doing a bit on the side, in the eyes of Inland Revenue you are self employed and will have to submit a SA. Remember you can offset your business outgoings. You also dont need an accountant unless you are LTD. Though knowing one can be very useful.

Dave

 

There isn't an awful point in registering.
The plus sides are that you can claim back your vat on your supplies.
The bad news is for your customers because you will all of a sudden become expensive as you are now charging 17.5 % more.
A problem I have is that a lot of my work is sublet outside europe etc and I can't claim back the vat! but I still have to charge it.

 

Just to give you an idea my accountant charges me around £100 for doing my SA. This includes answering my various questions,etc. I will say each year it has been worth the money. (Note that they also look after my VAT registered company as well)
Just to reiterate what www.mazoo.co.uk said make sure you keep all you paperwork, receipts, etc even if it is just in a box.

 

i keep most of my accounts up to date myself so my accountant only charged £80 last year to sort out my reciepts and file my SA return