 Connect System HMRC - Turnover / Income + VAT issue
Hi there,
I had to create new account on the forum because I lost data to previous one. I have already few stealth accounts which I purchased here.
The issue I have is about the UK VAT and the advanced system called CONNECT in the UK.
What are your experience with this system? Does this really works and tell the HMRC what was your gross income on your bank account or income on the eBay / Paypal?
I have attached my personal bank account to all of the stealth accounts, so even if they are separately below the VAT treshold then if I combine my total income from all of the accounts on the bank account then the VAT treshold is few times exceeded. So Could you advise me how are managing this? If the CONNECT really works, then the HMRC probably will know that I had to register for VAT, because of the sales from all Stealth accounts.
Also now the deadline for Self Assesment is comming - ofcourse I want to pay tax on the net income, but If i put true Turnover (gross income) then I will also suggest them that I should register for VAT before. Also If I put only net income instead of gross income to pay the proper Tax, then, if the CONNECT really works, then it will report to HMRC that my income on the tax return is not the same as the one on my bank account.
What are your thoughts about this? Do you have any experience that the CONNECT really know about the gross income on your bank account?
Cheers!
 | 
