computing vat before (ie excluding) shipping, how?

[Darren B]

Gold stars all round (except for Darren coz he was wrong )

OK no need for you to chip in was there miss bumps, back in your box

D

[TraceyHand]

Tracey, there is a specific lower vat rate you can start on to get you into the swing of things, i haven't looked at it lately so can't be exact, but it goes something like you charge the customer 17.5% but you only have to pay the vatman 5% to start off with. I think it lasts for quite some time. If you have this avenue open to you, make sure you look into it, it's helpful at the start during the transition.

That's interesting. I'm sure the accountant will know that but I'll be sure to bring it up when I next go in Thanks

Vat on delivery will not cost you any more, you just charge the customer and then pass it on to the vatman. Unless of course you now reduce your delivery charges by the vat rate so they are cheaper on your site as they are nett of vat.

That's the problem though, if we add VAT onto our current delivery charge it becomes a bit expensive. We just had to increase them once in line with a Parcelforce increase we had. It's something we need to look into again anyway, especially as Jesters is moving premises again shortly

Cheers

[TraceyHand]

LMAO. Yeah Bumpsy, you half horse provider...pah.

I have the whole horse..I'm saving it to have with chips for dinner!

[OriginalTouch]

Apply an average rate for simpler VAT: the flat rate scheme

The flat rate scheme is designed to help small businesses by letting you calculate your VAT payment as a flat rate percentage of your turnover. The percentages are decided according to the trade sector your business is in. Under the scheme you will not be able to reclaim any of the VAT you pay, as this is taken into consideration as part of the percentage calculation.

The main benefit of this scheme is that it reduces the time you spend accounting for VAT because you don’t have to record the VAT charged on each individual purchase and sale.

Businesses in their first year of VAT registration can also benefit from a 1 per cent reduction in the flat rate. To calculate this, take off 1 per cent from the flat rate for your sector. For example, if your business belongs to a sector which has a flat rate of 10 per cent, you should apply a flat rate of 9 per cent in your first year.
Who can use the scheme?

You can apply to use this scheme if:

* your annual turnover (excluding VAT) will be £150,000 or less
* your annual total turnover (including VAT) will be £187,500 or less.

For the second test above, ‘total turnover’ is the value (including VAT) of all your business supplies, including any exempt and non-business income. Non-business income is only included for deciding whether you can join the scheme. It will not be used to work out how much VAT you need to pay once using the scheme.

[leehack]

That's the problem though, if we add VAT onto our current delivery charge it becomes a bit expensive. We just had to increase them once in line with a Parcelforce increase we had. It's something we need to look into again anyway, especially as Jesters is moving premises again shortly

Lets get you a van and get you delivering then, i'm sure we can squeeze a few hours delivering into your schedule.

[TraceyHand]

Lets get you a van and get you delivering then, i'm sure we can squeeze a few hours delivering into your schedule.

funny

that would work out even more expensive because I'd have to factor in costs for stopping at KFC on the way home