How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3614
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

My question relates to UK VAT law Im setting up an on

Resolved Question:

Hi. My question relates to UK VAT law
Im setting up an on line business and expect to reach the VAT threshold very quickly
My question is, if VAT is already included in the products that I am purchasing to resell, how does it work? Do I take offer existing VAT, add my margin and then add VAT again?
My second question is that I will be representing various sports people and will be booking sports exhibitions and after dinner speaking for the these players. Do I need to charge the clients VAT on the rates? in other words, you are a sportsman and I book an evening at 1000 pounds at a pub - will I need to charge the pub VAT if they are putting on a show or if a private client comes along and wants you to come and play golf with him and his friends, would I need to charge VAT on this?
Thank You for your help
Kind Regards
Mark
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. I would advise you to register for VAT immediately. Then you will be able to reclaim all the input tax ie the VAT you pay when you buy something. Essentially VAT works as follows. When you sell something it is priced at the selling price you wish to use and then you add VAT on at usually the standard rate of 20%. This tax is output tax. When you buy anything you use the supporting invoice to record the VAT as input tax. Every quarter you aggregate the outputs and the inputs and make a VAT Return. HMRC wil then have to be paid for the outputs less the inputs and if the latter exceed the former than HMRC will pay you the difference. Every invoice you issue must have an unique number and show the price paid plus the VAT and the rate used, the date and the VAT Registered number. VAT will apply to all sales you make and must be paid by customers so you have to be careful that VAT is added to your fees or you will loose out on nearly 20% of your income.. I think you may be getting a trifle confused with your example. It is the pub who will charge you VAT, not the other way around. I do hope my reply has been of some assistance.
Customer: replied 1 year ago.
Hi Keith
Thank You for your help and explaining everything so simply. Everything makes perfect sense
Just to clarify part 2 - If you are a sportsman and I am taking bookings for you to do an exhibition, do I need to add VAT? ie. You charge 1000 pounds for a snooker exhibition and I add on my 10%. A potential client comes to me and I quote 1100 - would I need to add VAT to this - ie. would a sports exhibition / after dinner speaking etc. be VAT exempt ? I'll be sure to add on a tip for your help in clarifying this. Thank You so much
Customer: replied 1 year ago.
ie. I am not actually booking the venue for the player which I represent. My company is simply booking him at 1000 pounds for the evening, adding our commission and then arranging the date etc with the player. Would I need to add VAT in your opinion to the 1100 which will be charged to the client?
Expert:  bigduckontax replied 1 year ago.
Virtually everything your business undertakes will be a standard rated supply, ie the customer is charged your fee plus 20% VAT. In the scenario you quote you would issue an invoice for GBP 1100 plus VAT of GBP 220, total bill GBP 1320. You may not realise, but many individual sportsmen have to register and account for VAT, professional jockeys are a classic example. Please b so kind as to rate me before you leave the just Answer site.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3614
Experience: FCCA FCMA CGMA ACIS
bigduckontax and 2 other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thank You for your help Keith. It may be better that we then pass the clients directly onto the sportsmen which we are representing and ask the sportsman to pay us a commission, this way the client will not automatically be charged VAT if that specific sportsman is below the threshold -
Thanks for your help Keith, will leave the appropriate ratings etc
Expert:  bigduckontax replied 1 year ago.
Thank you for your excellent support.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.co.uk/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.co.uk/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.co.uk/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.co.uk/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.co.uk/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions