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Vat number
 

Hello there,

I've tried to get a UK VAT number and today got the letter from the Government.

"If you actually trade from home, please explain in the space below how you operate the business from home"

Any thoughts ?

I don't know what to say... Please help me!

Regards

Re: Vat number
 

Its not rocket science simply say you work from home and do online business whats so hard about this?

Re: Vat number
 

And why VAT? You shouldn’t need a VAT number or apply for VAT unless your turnover is over the VAT threshold? If it is then yea you need to register your business for VAT but it’s not a hard process

Re: Vat number
 

If it’s zero rated it still applies to the threshold just not reclaimable or have to pay the tax on it.

Sales of standard-rated, reduced-rated and zero-rated goods and services all count as VATable sales. When checking annual sales to see if they exceed the VAT limit (currently £85,000), you need to add up your standard-rated, reduced-rated and zero-rated sales!

Don't be tempted to leave out zero-rated sales thinking they're not subject to VAT. Remember that zero-rated sales are still subject to VAT - just at a rate of 0%! The only sales that you can leave out are referred to as VAT-exempt.

So if the OPs total VATable sales exceed the VAT limit - or are close to doing so - they will need to register their business for VAT. If it’s not then there’s no point to register, although you can voluntarily do so, there’s no advantage to it

Re: Vat number
 

Yup I copied and paste as it was what I wanted to say it was just easier to copy and paste what I wanted to say from that source. I’m lazy to typing it all on a mobile.

And yes I have no concept of why sellers of zero rated goods/services would bother to register for VAT if they are no where near the threshold... as there is no point there’s no advantage and no obligation to do so...so why don’t you enlighten me on why you think it’s a good idea?

Re: Vat number
 

Ahh yea the big claim back. Yea do this long enough and you will be served an inspection notice for sure and I’m talking from experience on the matter not as I sell zero rated but as I had a claim back legitimately but contacted by HMRC

Whilst there is no problem legitimately in claiming back standard rate items for the business and obviously not needing to pay for the sales being zero rated... The temptation is there to start making everything you buy claimable it’s a dark slippery slope so I would definitely urge on the side of caution. If anyone is doing this illegitimately...

I was called up by HMRC not long after my first couple of VAT submissions and had to supply all sorts of receipts proof info and had many questions to answer (I had nothing to worry about my first submission was a legit claim back and the second was where I had to pay tax) just a warning to anyone who’s thinking of doing this...

Re: Vat number
 

I’m not disagreeing with you what you had said is correct! The problem is most don’t sell children’s clothes or a category is zero rated items.

Rather my post was to anyone out there reading this and thinking this is a instant easy fix cash injection...

If your legit then by all means voluntarily register but if you think you can do this and not be 100% honest on all of your sales/purchases well then you have been warned. HMRC will look at business who are claiming back all the time (I wasn’t and I still got a call) so take that as you may... (and I’m not directing that anyone in particular I’m just making an important point)