Re: bypassing VAT thresholds = evasion? Quote:
Originally Posted by JamesNorth101 Not what I meant
If for example you pay a Flat rate VAT in which case your not paying 20%
You really need to talk to an accountant... The forum is not the place for tax advise.
A company is liable to pay VAT on sales of £85,000. If you have 2 companies set up correctly then each can sell £85,000 although its not a straight forward as that. An accountant can help you with the details | If you are using Flat rate VAT or Standard rate VAT you are still required to register for VAT.
"A company is liable to pay VAT on sales of £85,000." Do you mean: "on sales OVER £85,000."?
The consensus i've found is people are using multiple accounts in order NOT to register for VAT so they can exceed £85,000 in total sales. Aggregating sales from all your accounts and exceeding £85,000 would result in a VAT owing on your part and the HMRC could easily see these Amazon disbursements in your bank records
Using a company for each account makes sense. Each account would be owned by a UK company which would retain the earnings and never let itself go over £85,000. You could then pay a reasonable salary or dividends to yourself from each at designated times. Although I don't believe many people are doing this because of the complexity and accounting costs. I also dont know if the HMRC would allow this, but logically it makes sense.
Last edited by JamesNorth101; 10-25-2018 at 07:22 PM.
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