I’ve finally done it

[samspalace]

Hi everyone,

I’ve finally registered my business for VAT havnt received an email from eBay to register but just went for it as my goal is to sell sell sell.

Quick question if anyone knows.

Hypothetical question: Let’s say I sell a product for £200 and I sell 100 in a month am I right in thinking that 20% off the £200 per sale will be paid towards vat so £40 (vat) per sale x 100 = £4000 will be paid towards VAT?

I would really appreciate any help regarding this.

[james_112233]

Why don't you approach an accountant ? £1500 a year and they'll sort out everything.

[Hank]

Agree with above, for the relatively small fee I wouldn't even touch VAT myself. A good accountant, ideally chartered, will also distance you from any possible investigations, HMRC like it when they can effectively trust a third party submission.

Remember that VAT submissions are quarterly and must be done electronically.

[jamthedeejay]

Originally Posted by samspalace

Hi everyone,

I’ve finally registered my business for VAT havnt received an email from eBay to register but just went for it as my goal is to sell sell sell.

Quick question if anyone knows.

Hypothetical question: Let’s say I sell a product for £200 and I sell 100 in a month am I right in thinking that 20% off the £200 per sale will be paid towards vat so £40 (vat) per sale x 100 = £4000 will be paid towards VAT?

I would really appreciate any help regarding this.

Yes that's correct, you can claim back VAT on goods you purchase for your business though providing the companys are VAT registered you would need invoice with there VAT number on. Also getting an accountant would help if unsure. There's some good software that you can get that will automatically do it aswell

[james_112233]

Originally Posted by Hank

Agree with above, for the relatively small fee I wouldn't even touch VAT myself. A good accountant, ideally chartered, will also distance you from any possible investigations, HMRC like it when they can effectively trust a third party submission.

Remember that VAT submissions are quarterly and must be done electronically.

Worth every penny for that alone.

When you're registered for VAT you're basically a tax collector for the government and automatically on their radar.

[samspalace]

Thank you everyone for all your replies it’s much appreciated.

I have another quick question if buying stock from alibaba do you pay vat on top of the final price. I’ve checked alibaba receipts I can’t see VAT has been added on my orders. I heard you can claim vat on any goods/services related to the business?

[KODE332]

Originally Posted by samspalace

Hi everyone,

I’ve finally registered my business for VAT havnt received an email from eBay to register but just went for it as my goal is to sell sell sell.

Quick question if anyone knows.

Hypothetical question: Let’s say I sell a product for £200 and I sell 100 in a month am I right in thinking that 20% off the £200 per sale will be paid towards vat so £40 (vat) per sale x 100 = £4000 will be paid towards VAT?

I would really appreciate any help regarding this.

id make sure you have a market and actual demand for your products before registering for everything, also as far as I know you're exempt from VAT if your sales are below a certain threshold

[Eagle10]

It depends what you are selling but I am Flat Rate registered and therefore only pay 7.5% on all sales. Pay the VAT every three month using bridging software from Excel - really very easy and unless you have a very complex business don’t really need an accountant. Managed payments report each month pulled into Excel gives you all the info needed.

[SaiJin]

Originally Posted by james_112233

Why don't you approach an accountant ? £1500 a year and they'll sort out everything.

Darn, it costs 1500 pounds for an accountant to do taxes there?

[samspalace]

Originally Posted by KODE332

id make sure you have a market and actual demand for your products before registering for everything, also as far as I know you're exempt from VAT if your sales are below a certain threshold

I basically need to sell 100 items and my vat threshold was at 84,500 so registered so eBay don’t block my account. I actually got my vat number today so just need to wait for some stock to come through sell it all and then I’ll be selling a different product which I hope will make my business a success.

[samspalace]

Originally Posted by SaiJin

Darn, it costs 1500 pounds for an accountant to do taxes there?

Yes I’m not going to pay that much money for an accountant I’m going to try and do it all myself if I can if not I’ll get a cheap accountant no expensive accountant

[nanyitech]

You need find a accountant who know how to 0 declare since Ebay/Amazon already deduct the 20% VAT, otherwise, HMRC may still charge you VAT.

[Battleshaft]

Hey sorry for this ridiculous-sounding question, but what does VAT mean?

Thanks!

[Hank]

Originally Posted by SaiJin

Darn, it costs 1500 pounds for an accountant to do taxes there?

It not just taxes, that includes everything from managing your books, payroll, statutory submissions (which carry State imposed fees themselves) etc. £1500 is top end money for a good Chartered Accountant. You could get a respectable online-only company to do it all for well under a grand.

IMO it is worth every penny in the UK, VAT is a politically hot topic at the moment and if you overstep the line just once you will be clobbered. Genuine errors are met with scrutiny and fines - I speak from experience - making a DIY balls-up will almost certainty trigger an investigation.

IMO you have to be of your head to tackle VAT yourself, I'd simply rather earn a few quid in the hours wasted buying software, managing the submissions, and that's after teaching myself what to do with all the numbers.

Okay, there are those who have suitable training and experience to confidently tackle it themselves. I'm not one of those and doubt many 'regular joe' sellers are either. My accountant has managed and manipulated how I present myself in such a way that he's reduced my taxes, claimed for reliefs etc etc in a way I could never of dreamed of. He's saved me quite a few quid over the years.

Anyway, I like my "Hello Mr Accountant, here's a heap of numbers and paperwork, make it all go away" approach.