VAT FOR BUSINESS EXPLAINED!

Hey so hope you still reply to this!

I don’t think your example was fair. You compared apples and pears.

Example part 1
SP £100
Materials £60 inc vat
Profit £40

Example 2
£120
Materials £60
Profit ended at £50
You added your own additional profit and VAT

This is how I see the break down
40 + 20% (original mark up plus vat) = £48
Materials £50 + 20% =£60.00
You then added more mark up in the form of £20% on the £60 you didn’t need to charge. £12
So £10 + 20%

I get you were trying to make it simple but this is how small businesses lose sales or just charge more for the sake of it.

The 20% should have just gone on the original £40 mark up.

I’m not saying you’re wrong but the comparison was not comparing the same thing.

The new price should have been £108

£48 in bank after purchase and sale. You charge £18 vat and paid £10 so the difference is £8 so you pay this to HMRC and you are left with the same profit of £40.

I welcome a reply in case I have missed anything?

Hi if I business the the turnover reset to £0.00?

Hey, thanks! Definitely enjoyed your explanation. Helped out for sure. Plus loved your set up too!

I have a different type of question, how can I add my vat number to a new and second business with different business activities? I can't seem to add my VAT number to my new login gateway.

Recently started a business of my own and cannot thankyou enough for the free advice…. Been a major help and I’m always watching your videos just to get an idea of how this pesky system works…….. good with business not so good at the rest 😂

Wow this is 4 years ago
Hi, can you please upload a video of explaining the way someone can reclaim their input VAT if am making both Taxable supplies and exempt supplies at the same time 🙏

Emard Brooks

Judah Valley

Well explained ! Thank you!

If I as an importer, bring in a product which I have paid VAT on after going through customs. For example a product that cost £10 and I have paid a vat of £2 on this products. When I re sell the product for let says £15 plus VAT which works out as £3 VAT being charged to my customers. My question is if I had 100 units it means I have given out £300 worth of vat which my customers will claim back from and I will only get £200 back from the government ?

If I'm below the threshold can I still claim back vat after registering?

If someone is charging me VAT, is there a way I can be sure they are VAT registered and not just having me over?

Hi. I am currently nearing the VAT threshold, I know for sure that if I'll stay operational, I would reach it before the 12 month period ends. But I'm quite new to all this and I think I am not yet ready to deal with VAT as I'm busy enough already as it is. Can I close my business while still below the threshold until the first 12 month period ends and resume it after to avoid registering?

I wish the benefits were explained with some numbers like the example. Because it all sounds unbeneficial after hitting £85k i.e. the work around of increasing the pricing to counteract it, whilst making it more expensive for the consumer.

Really great explanation! Thanks

Need your opinion, am self employed kitchen fitter and a contractor for kitchen retail company where cis is deducted at payment, though not VAT registered but the company deducts cis and vat before payment, what are your thoughts

As an individual with a registered entity in the UK and VAT registration at 20%, if we buy goods from a UK retailer, will we are required to pay VAT? If so, how much can we claim back?

my taxed income pays for taxed good and services?

Hey, thanks for the simple explanation - great video! If I run my YouTube channel through a limited company ie I don't actually sell any products or services - could I voluntarily register for VAT and claim VAT back on expenses incurred for running the channel such as a camera? Secondly, similar question but for a limited company and renting a house. No actual products sold again but i would buy things such as furniture that I could claim VAT back on so would it be worth registering there as well? Really appreciate your help!

Thomas Tuchel a business expert

Could you please tell me if i sell kids educational toys in uk do I have to pay VAT on them?

Thank you so much

What is vat return?

Hi everyone.

Great video.

Could somone help me out here?

Im trying to workout this if somone could help.

I charge my customer £31000 including the VAT (I am VAT registered)

The goods I purchase from suppliers cost me £24863.25 including VAT (all my suppliers charge VAT)

How much is the exact VAT figure that I pay the VAT man after all the offsets etc.

Very confusing!! It’s not £6200 I pay the VAT man. It’s that offsetting stuff???

PERFECT VIDEO! Highly appreciated!
x

Great video, thank you.

Brilliantly broken down. Thank you.

I am in Canada and my clients in EU especially France . I am starting an online business ( services) and now I've learned that I have to register for VAT. Where I live, we don't have to register for VAT if we generate less than 30.000$ per year ( which is my case). Don't know what to do and who to ask ? Should I register in Canada or France ?

If you pay VAT using the margin scheme as its 2nd hand goods. Do you charge VAT on the goods you sell (as you are VAT registered) or just pay the VAT as its a margin scheme?

Can I claim vat back on a cash purchase,? I paid cash and got an invoice to my business , it was for materials for my business

We applied for VAT, after 30days we got a questionnaire, 3 days ago we filled the questionnaire, now the question is when will we get the VAT Number,
Kindly help

Should I charge VAT on my Labour? Should I charge VAT on materials that I already pay VAT? I'm a tad confused. I'm a sole trader selling Leather Goods so I'm still new to this.

But how much the taxes in UK ? For small business!! I live in Italy and i have a small business i make 5k in year ! But here in Italy they kill you with taxes every tree months you should pay 1 k euro for vat taxes and the end of the year you should pay 15% of your yearly profit ..i pay 6 k every year and i make just 5k 😭 , i don't want close my handmade shop but i pay more than i have !! I want change the country and move to UK !! any advice please ...🥺🥺😱

I'm an online retailer and VAT has crippled my business. I'm unable to add the cost onto my products as what I sell is so competitive. In light of this, I'm handing over around about £1500 every 3 months of my profits to the tax man. When you sell online, hitting the VAT threshold is really easy. In my eyes, when you're selling to consumers then VAT is a tax that inadvertently sabotages your business. The threshold should be based on profits and not turnover. Turnover doesn't come close in reflecting your profits. Basically it's legalized theft...forced taxation.

RIP OFF BRITAIN

Very helpful thankyou

Vat tax = 20% of your sale price - 20% of your supply cost.

To clarify, if you purchase goods from another business, you will also receive from them a vat receipt, so that when you charge your 20% to your customer, you can retain the vat amount that your supplier paid the tax man, and then pay the tax man the difference. The reason why this system is used as opposed to a standard sales tax rate as is implemented in the US, for example, is that customers will pay more for products with longer manufacturing processes. For whatever reason that is important, I dont know, but it probably has something to do with more governmental services being used the more times a product changes hands in its manufacturing process. In the USA, you pay for these govt processes whether you use them or not.

hi Dan, would I pay VAT on Youtube content? I have a product business that is just under the threshold so if I start making money digitally will I start paying VAT?