VAT...the biggest ripoff in this county

[wizer]

Is that 70k VAT Threshold the same no matter what the type of business is? I'm surprised it's that high? Or am I missing something?

 

[matt]

Is that 70k VAT Threshold the same no matter what the type of business is? I'm surprised it's that high? Or am I missing something?

I think it's turnover rather than profit so not that high in real terms.

 

[wizer]

Cheers Matt

 

[Anonymous]

yep its on turnover, which with a few decent kitchen jobs you would reach before you know it.

The higher your VAT bill the better you have done really.

 

[wizer]

I was thinking more in terms of the web jobs I'm doing. Most quotes I'm doing are around £1200-2000, so I've got a long way to go before I need worry about VAT

Do I need to declare to the state if I'm also employed? (My Employer knows I'm doing private work).

 

[Anonymous]

yeah wizer you need to declare all your income regardless of where it comes from. You are doing foreigners on the side but its still a form of income that needs to be declared!!

 

[wizer]

cheers, I'll speak to Business Link.

 

[Dibs-h]

cheers, I'll speak to Business Link.

Oh you'll have a laugh there!

If you're doing work in your own time & given it is for clients - I'd reckon the best thing would be to go limited - makes life easier in the long run and corporate clients usually like it when you are Ltd.

You can also choose to register - even tho your turnover is <70k. It helps reclaim the VAT back on your IT equipment. On the whole as you'll be a net VAT payer to HMRC they won't have a problem.

Since you are employed & self-employed you'll need to fill in a SA every year. Income from the Ltd can either be left alone - just paying Corp Tax or if you need it you can pay yourself dividends (there might be some additional Tax liability- probably not tho). As it's truly self-employed - pointless paying an salary and therefore NI.

If the Mrs doesn't work - you can use her tax allowance as well.

PM for my nbr, if you want a chat - I'm employed as a day job and still kept my Ltd Co from my Contracting days and still put business thru it.

HIH

Dibs

 

[wizer]

Thanks Dibs. I'm genuinely interested in getting it setup correctly. I know I'll never go over 70k so I'm not worried about tax evasion/evading. But I don't want the tax man on my case. So if it's just a form once a year, no bother. I'll read up on the IR website. Cheers.

 

[Noel]

I was thinking more in terms of the web jobs I'm doing. Most quotes I'm doing are around £1200-2000, so I've got a long way to go before I need worry about VAT

Do I need to declare to the state if I'm also employed? (My Employer knows I'm doing private work).

Oh you'll have a laugh there!

If you're doing work in your own time & given it is for clients - I'd reckon the best thing would be to go limited - makes life easier in the long run and corporate clients usually like it when you are Ltd.

You can also choose to register - even tho your turnover is <70k. It helps reclaim the VAT back on your IT equipment. On the whole as you'll be a net VAT payer to HMRC they won't have a problem.

Since you are employed & self-employed you'll need to fill in a SA every year. Income from the Ltd can either be left alone - just paying Corp Tax or if you need it you can pay yourself dividends (there might be some additional Tax liability- probably not tho). As it's truly self-employed - pointless paying an salary and therefore NI.

If the Mrs doesn't work - you can use her tax allowance as well.

PM for my nbr, if you want a chat - I'm employed as a day job and still kept my Ltd Co from my Contracting days and still put business thru it.

HIH

Dibs

How much are audit fees every year for a Ltd Co? Hardly be worth it for a part time enterprise with a small turnover?

 

[Dibs-h]

How much are audit fees every year for a Ltd Co? Hardly be worth it for a part time enterprise with a small turnover?

Small Companies are exempt from Audit (or actually there is an audit exemption and small companies can claim this - just some blurb in the accounts) - so zero fees.

 

[Noel]

Thanks Dibs, didn't know they had changed that regulation.

 

[Dibs-h]

Thanks Dibs, didn't know they had changed that regulation.

It's been like that since (at least) 2000 when I started my Ltd, when I went contracting. I suspect it's been there since before.

For further info

http://www.companieshouse.gov.uk/about/ ... shtml#four

HIH

Dibs

p.s.

This is the current blurb

"The directors are satisfied that the company is entitled to exemption from the requirement
to obtain an audit under section 477 of the Companies Act 2006 and that members have
not required the company to obtain an audit in accordance with section 476 of the Act."

This is the older blurb,

"(a) For the year ended . . . (date) the company was entitled to exemption under section 249A(1) of the Companies Act 1985. (In the case of charitable companies which are claiming partial exemption, the reference will be to section 249A(2)).

(b) Members have not required the company to obtain an audit in accordance with section 249B(2) of the Companies Act 1985; "