I am moving to London working on a contract fitting gas meters. I will also be working on the side doing private jobs, ie weekends, and when I can evenings. I was wondering what the benefits would be in becoming VAT registered and the negatives? My contract would earn me around £1700 before tax and other expenses. I would claim business mileage allowance obviously but could I also claim back VAT on diesel on top? I understand becoming VAT registered is compulsory if you earn around £64000..? so will that apply to me if I only worked on the contract and did no private work? Also, when I did do private work I would be less competitive I guess but was wondering how many heating engineers out there do charge VAT as a %. Would I be able to get parts and materials cheaper than other guys who aren't registered because I could claim back VAT??
I am soo confused and worried. I will be paying the 40% tax rate so I don't want to lose more money by not becoming VAT registered. I am also changing vehicle soon and considering going to auction where you almost certainly pay VAT (buying van for around 4k) Just need some help whether, overall, VAT registering is a good idea for someone in my situation or not.
I will employ an accountant after a few months but until I have limited cash flow, cannot do so.
Any help would be greatly appreciated.
Thanks in advance,
AJ
I am soo confused and worried. I will be paying the 40% tax rate so I don't want to lose more money by not becoming VAT registered. I am also changing vehicle soon and considering going to auction where you almost certainly pay VAT (buying van for around 4k) Just need some help whether, overall, VAT registering is a good idea for someone in my situation or not.
I will employ an accountant after a few months but until I have limited cash flow, cannot do so.
Any help would be greatly appreciated.
Thanks in advance,
AJ