Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able help you with your question. Please do not make any supplementary questions before you have received my reply or you may loose my response.
When your turnover in any one year reaches 83K you must register and account for VAT. Any VAT from sub contractors are then an input tax which can be reclaimed quarterly. Here is the advice from the Gov UK web site in this matter:
'There’s a time limit for backdating claims for VAT paid before registration. From your date of registration the time limit is:
You can only reclaim VAT on purchases for the business now registered for VAT. They must relate to your ‘business purpose’. This means they must relate to VAT taxable goods or services that you supply.
You should reclaim them on your first VAT Return (add them to your Box 4 figure) and keep records including:
As you are probably aware once registered for VAT meticulous book keeping, invoicing and retention of records is essential. I recall a VAT inspector demanding to see the receipt for 13p, yes 13 pence, of input tax reclaimed!
I do hope that you have found my reply of assistance.
Yes it is, you may follow up if there is anything you do not understand.
Once registered you must render invoices to customers bearing an unique number, date of supply, cost of supply, VAT charged and quoting your VAT number. If you are making exports outside the EU then these are subject to VAT but at a rate of 0%.
Yes, assuming HMRC grant you registration then you can reclaim input tax as explained:
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