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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5065
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Vat schemes choice

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vat schemes choice

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Could you give me a little more detail in your question, please, to enable me to address it fully?

Customer: replied 1 year ago.
We are considering registering for vat, our small business repairing cycles is busy, our total turnover is 48k but our stock buying is high at 40k per annum to achieve 48k turnover. Am I best on the standard rate scheme of vat if our input is that high each year.

Yes you are, but there is a snag. The VAT Turnover Threshold is 83K in any one year. You can try to register, but there is a very good chance that HMRC will refuse. Were you operating in a zero rated environment eg exporting then there would be no problem, but with normal trading below the threshold you will find HMRC very resistant to registration.

I am so sorry to have to rain on your parade. You can but try though, they can only decline!

bigduckontax and 2 other Tax Specialists are ready to help you

Thank you for your support.