Registration for VAT - time taken

[completerookie]

Just tried to register a company for VAT, been told by the Grimsby VAT Office

"you'll get the number in 7-8 weeks and in the meantime, you are NOT allowed to charge vat and you cannot offer things vat free - you are of course able to obtain a refund on expenses incurred before you have your number - have a nice day"

is the government trying to help businesses or what !
in the good old days, you got a vat number in a couple of days !

Moral - the moment your kid is born, start registering for VAT, it'll probably be through in time for him/her to start thier company

[Miranda Stamp]

Unless you're running a business like mine where your VAT charged is a lot less than your VAT on your expenses (we sell mostly zero rate goods) then surely this is in your favour?

[Jan]

Actually I think that you can claim VAT on certain items for up to 18 months before you register, computer equipment being on of these things, having said this, I registered for VAT over 10 years ago, so thing might have changed since them.

Regards,

[completerookie]

nah, can't get away with it, got to register whether its in my interest or not.

in actual fact, because I cannot offer "vat free sales", I may appear to be 17.5% more expensive than competitors.

[TraceyHand]

Actually I think that you can claim VAT on certain items for up to 18 months before you register, computer equipment being on of these things, having said this, I registered for VAT over 10 years ago, so thing might have changed since them.

Regards,

That is still the case. We're having to register Jesters (and late too ) and we can claim the VAT on things like computer equipment held at the time of registration (or, in our case, the time registration should have been done)

I'm hoping the extra we could have claimed will cover our late registration fees at least (which I believe is a %age of what you have owed since qualifying for having to register)

[completerookie]

sorry, Jan, missed your comment,
Its not the claiming back of VAT thats the issue here, its that I'm not allowed to CHARGE vat or offer VAT-free sales until I have the vat number,

I can save up all my expenses ready for the issuing without probs.

[TraceyHand]

nah, can't get away with it, got to register whether its in my interest or not.

in actual fact, because I cannot offer "vat free sales", I may appear to be 17.5% more expensive than competitors.

It's a toughie, isn't it?
We've been left with either upping our prices or "losing" the VAT when we come to pay it! As our prices are already RRP vat-inclusive prices anyway..there's only one real choice!

[completerookie]

Just went on to the dreaded VAT-Mans site and read the following:

NOTE: In respect of input tax, you are allowed to reclaim VAT incurred on goods purchased by the business in the 3 years prior to the date of registration (6 months for services received by the business)

later they state:

* the goods were supplied to the person who is now registered for VAT;
* the goods were supplied not more than 3 years before the business was registered (however, this condition does not apply if the business was registered before 1 May 1997 and you have not yet made the first return);
* the goods were obtained for the business which is now covered by the VAT registration;
* you still hold the goods or they have been used to make other goods which you still hold; and
* you compile a stock account of the goods. This must show the quantities of goods and the dates when you obtained them. If you used any goods to make other goods, or disposed of them after you were registered for VAT, the account must give details, with dates.

at last, a minor victory and we can get something off the money-grabbing ba****rds

[brian.mc]

at last, a minor victory and we can get something off the money-grabbing ba****rds

Don't worry - they'll get it back off you 100 times over once you're registered!

[leehack]

I registered for VAT over 10 years ago, so thing might have changed since them.

Bloody hell Jan, it was 15% then too, hope you've realised it's gone up.

[george]

I hate vat. HATE IT HATE IT HATE IT.





*kicks over waste bin, dead beaver flies out, smashing lcd monitor screen, "oh b*ll*cks"*

[TraceyHand]

*kicks over waste bin, dead beaver flies out, smashing lcd monitor screen, "oh b*ll*cks"*

never mind, G
at least it was only the monitor you broke!

[george]

I actually have a theory, for business who don't pay that much VAT, for example (small) companies who buy from individuals like antiques, used clothes, memorabilia and suchlike would be best to split into two when they get up to the VAT limits.

Tin hat on, awaiting first `flaw in your theory` bombs.


And the postage/vat scenario is wrong.

[Donna]

I hate vat. HATE IT HATE IT HATE IT.

There there now George, my designer has a blue pill he gives me when i feel that way about V8..

Re the splitting into 2 business and Vat..not really possible if they are operating out of the same premises; need to be 2 different legal entities operating independently. Sorry!

[Stereo Steve]

Flaw in your theory.

They don't like it and will often see through it. It is possible if the businesses are markedly different. If not, they'll 'ave ya.