What does this mean "Not registered for VAT."

Discussion in 'Plumbing and Central Heating' started by pappyon, 8 Feb 2010.

  1. pappyon

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    When I phoned an installer for a quote for servicing my year old boiler, I queried whether the sum quoted was inclusive of VAT.

    He replied that was it in total as he wasn't registered for VAT.

    I thought all businesses had to charge VAT.

    Please enlighten me :rolleyes:
     
  2. seco services

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    no
    i'm not vat registered so i can't charge vat and can't claim it back when i pay it out.
    its an option to register if your under £68000 a yr gross turnover.
     
  3. Redhotferrari

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    If the business turnover is less than the threshold which I think is 68 k then you do have to be vat registered, you can choose to be if you want to. Over that figure you have no choice and must be vat!
     
  4. Chukka63

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    im not VAT registered either.i refuse to collect money from my clients on the govts behalf.this means,i can charge less than my VAT registered competitors.i realise there are benefits to being VAT registered.
     
  5. Fredstudio

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    does this mean if you set up on your own you don't have to pay tax?
     
  6. seco services

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    you still pay your tax and still do your tax returns etc.
     
  7. kitch0978

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    wats advantages to being vat registered if you gross under 68k?? or isn`t there any?
     
  8. heatingman

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    there are advantages, it depends where you source the bulk of your work .
     
  9. nad000

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    benefits of being registered for vat are that all your purchases (materiels, van, diesel etc) you will get a refund on the vat that you have paid on them for example for every £10 diesel that you spend you will get the 17.5% back. BUT you have to collect vat from your customers, you must invoice them plus VAT. Overall benefit is F*** All, every 3 months you will have hand over the difference between your purchases and your output sales also dont forget the extra paperwork, lose customers because your competitior will do the job cheaper, and every so often you will have the vat man visit you and he will bring with him a pair of latex gloves so that he can do a inspection of your rectum..
     
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  10. cashjob

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    Yes it does! :D

    What's VAT? ;)
     
  11. pappyon

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    I thank all who responded to my post.

    It is much appreciated :LOL:
     
  12. D_Hailsham

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    If you work mainly for non-VAT registered people, there is no point registering for VAT as your prices will be higher as you have to charge your customers VAT. But if you do a lot of work for VAT registered firms, you should register as you will be able to claim back the VAT on your purchases (Input Tax) and your customer will be able to claim back all the VAT you pass in to them. You effectively pay HMRC the difference between the VAT you pay out and the VAT you receive. Many companies will not work employ firms which are VAT registered.
     
  13. essexmick

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    Does this mean that if you buy a service from a non-VAT registered plumber, you as the purchaser have to make separate arrangements to pay VAT on the services you have procured?
     
  14. Corgigrouch

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  15. kbdiy

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    It still never ceases to amaze me how little people understand about the tax system.

    Bottom line - if you earn money you have to pay tax (after certain allowances etc have been deducted and not liable for tax). This is Income Tax and has nothing to do with VAT and invoicing.

    VAT - as has been explained above, a business may be registered and charge VAT to customers. If not registered, no VAT to be charged but cannot be claimed back. Non-registered businesses will often ask the customer to buy goods so the money does not go through the business books and possibly raise turnover to the compulsory registration threshold.

    As far as the customer is concerned there may be little difference in the end cost but VAT registered business MUST charge VAT so could be more costly.
     

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