There are generally two reasons to register for VAT: Compulsory: When your sales exceed £85,000 in a 12 month period. Voluntary: If registering your business for VAT will be a benefit to you (the benefit is that you can reclaim VAT paid on supplies and expenses). If...
There are occasions when plumbers – and, indeed, anyone in construction can charge VAT at 5%. But what are the rules? Standard rate of VAT – 20% Generally, plumbers charge VAT at 20% on: Most domestic repair and maintenance work Work to newly-built structures that...
Different accounting software packages treat their VAT codes and rates in different ways. This quick guide should point you in the right direction so that you know which rate to use in which situation: Xero No VAT – These transactions will not appear on your VAT...
You should talk to an accountant urgently! If at any point during a 12 month period, (good to review this monthly) your turnover exceeds the VAT threshold of £85,000, you must register within 30 days from the end of the month in which you went over the limit. If the...
Charging VAT or not depends on various things: Are you invoicing for goods or for services? Where is your customer based? UK, EU, outside the EU? Is your customer a business or a consumer? The answers will dictate whether your sale is: Standard rated (i.e. 20% VAT...
There are generally two reasons to register for VAT: Compulsory: When your sales exceed £85,000 in a 12 month period. Voluntary: If registering your business for VAT will be a benefit to you (the benefit is that you can reclaim VAT paid on supplies and expenses). If...
