19th June 2009, 04:03 PM
Several points about VAT and smaller organisations:
It is useful if you want to buy a whole load of equipment at one go.
Many client's don't care if you are VAT registered or not because they are anyway, it's more of a cost problem if you are dealing with say the individual homeowner as the client (unless they have some sneaky way of putting it through a business account that is VAT registered).
If you are charging VAT but not claiming much back you can go on a flat rate scheme, which is meant to even it out.
I thought there were cases where charities didn't have to charge VAT (not the important word charge, which is what the Unitmeister was actually on about) if they were doing work for another charity. I was certainly told in one case that one of the tenderers had waived the VAT because the work was for a charity (and I assume they are a charity too). I might be wrong.
You don't need an accountant just because you are paying VAT, they have other uses. I'm not even sure if you need one if you are paying VAT.
Why I am even giving you all this useful information anyway? If you are working as a 'one man bandit' and stearing close to the ?67,000 threshold you are clearly a commercial genius!
It is useful if you want to buy a whole load of equipment at one go.
Many client's don't care if you are VAT registered or not because they are anyway, it's more of a cost problem if you are dealing with say the individual homeowner as the client (unless they have some sneaky way of putting it through a business account that is VAT registered).
If you are charging VAT but not claiming much back you can go on a flat rate scheme, which is meant to even it out.
I thought there were cases where charities didn't have to charge VAT (not the important word charge, which is what the Unitmeister was actually on about) if they were doing work for another charity. I was certainly told in one case that one of the tenderers had waived the VAT because the work was for a charity (and I assume they are a charity too). I might be wrong.
You don't need an accountant just because you are paying VAT, they have other uses. I'm not even sure if you need one if you are paying VAT.
Why I am even giving you all this useful information anyway? If you are working as a 'one man bandit' and stearing close to the ?67,000 threshold you are clearly a commercial genius!