So essentially your prices are now higher and may mean you customers go to the other widget shop that is now cheaper than you. still sell at £10, but have that as the VAT inclusive price (£8.33 £1.67 VAT). You buy your widgets at £5.83 (you actually pay £7, but £1.17 can be claimed back)You sell them at £8.33 (you actually charge £10, but £1.67 goes to HMRC)So, you now make £2.50 (£8.33 minus £5.83) profit on each sale.
If you sell mainly to non-VAT registered businesses/people, then perhaps not.
Senior sex affair dating - Not a regstion
You have to add VAT at the appropriate rate to everything you sell (usually at 20%).
This additional income isn’t yours – you’re collecting it on behalf of HMRC (HM Revenue & Customs).
If you haven’t exceeded the threshold for compulsory registration you can still register voluntarily if it makes sense for you to do so.
If you’re a VAT registered business then you are essentially an unpaid tax collector.
Every 3 months you need to pay over the VAT you’ve collected to HMRC. When you buy items from another VAT registered business – they have to charge you VAT. So, lets assume that in a 3 month period you collect £1,000 in VAT from your customers.
In the same period you also buy something from a supplier and you’re charged £200 VAT (Total: £240).Whether it's the too-good-to-be-true business opportunities, endless ads, broken links, repetitive postings, or just straight-out scams... And it's often burying the actual good job opportunities. We can make your job search experience better, easier, faster, and safer."Out of the past 10 years of using job websites, I have never had the positive experience I got with Flex Jobs. Thanks to Flex Jobs, I found a position that I have been looking for, for years, and I will always recommend Flex Jobs over any other job site out there." - John T. We truly want our users to be satisfied with our service and to feel that it's been worthwhile for you. We were founded by jobspace pioneer Sara Sutton Fell when she was looking for a flexible job after starting a family.If you sell mainly to VAT registered businesses then you probably should.Even if you sell mainly to non-VAT registered business and decide not to register for VAT yourself, then do remember that if your turnover gets high enough (and we hope it will! A couple of other important things that may effect your decisions is whether the products you supply are “Zero-rated” for VAT, and whether your main suppliers/customers are outside of the UK – but that is outside the scope of this article.By not being registered, you are telling the world that your company is turning over less than £82,000 a year.