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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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GOod morning, I created a company. I import baby clothing

Resolved Question:

GOod morning,
I created a company. I import baby clothing from China.
DO I have to register for VAT if I have a turnover under £81000?
DO I have to charge VAT selling un UK and in EU our baby blankets, swaddles, muslins, bibs and nappies?
I have created a personal limited company and I am the only shareholder and the company director, I do not want to receive salary, is this a problem?
I need cash for my limited company, how do I pass te money into the company bank account?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question. You don't have to register for VAT if your turnover is below the threshold for VAT registration.More information on requirement to register for VAT are covered herehttps://www.gov.uk/vat-registration/overview Baby clothing does not carry any VAT as it is zero-rated for VAT purposes. You will find detailed explanation on this in VAT Notice 714 herehttps://www.gov.uk/government/publications/vat-notice-714-zero-rating-young-childrens-clothing-and-footwear/vat-notice-714-zero-rating-young-childrens-clothing-and-footwear#articles-of-clothing-or-footwear Not receiving a salary from your own LTD company is not a problem.. if you do decide to pay yourself a salary at a future date, you should register your company as an employer for PAYE. You can inject personal funds into the company bank account to fund working capital and start-up costs and call it as director's loan to the company. It will sit in the balance sheet as a creditor until such time the comapny finances allow you repayment of loan... not an issue! I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
thank you very much for your reply, I already read this document, but I can't understand from the document if the baby blankets, swaddles, muslins. They are for sure for children, but are they clothing? For sure the company is just for baby products, but it would be simpler not to register. Please let mr know. Thank you
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.This fall under the category of baby clothing and therefore no VAT payable.I happen to buy some lately for a baby in the family and it was a zero-rated item on till receipt.I hope this is helpful and answers your question.
Customer: replied 1 year ago.
thank you, ***** ***** not register, but I just wanted to make sure that the vat exempt was ok for Uk and EU as well. Just checkng, thank you very much.
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.
If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.
Customer: replied 1 year ago.
the only issue is that I want to make sure the same is for EU, as you can see from my first request.
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question.The threshold for registration is £82,000- the total value of your UK sales- you receive goods in the UK from the EU worth more than £82,000These are covered in HMRC guidance here (VAT registration)https://www.gov.uk/vat-registration/when-to-register I hope this is helpful and answers your question.
Customer: replied 1 year ago.
I am really sorry, in my first qrestion I asked if I need to add vat. You confirmed that these products are exampt in UK, but I do not undestand if I have to add vat if I sell in the EU.
I am really sorry to be a pain and promise to stop as soon as I know this, thanks
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply..
The answer is NO... you don't have to add VAT for sales in the EU.
I hope this is helpful.
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
thank you
I am crediting you know
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.Best wishes
Expert:  taxadvisor.uk replied 1 year ago.
Your reward of a bonus is greatly appreciated.Best wishes

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