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

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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
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 2 years 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 2 years 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?
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.
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Customer: replied 2 years 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
Thank you for your excellent support.