VAT De-registration

[Martin]

Re: VAT De-registration

I’ve just added 4 more benefits to De-registering from VAT to add to this list: –

1.) Your profits increase by 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}
2.) No paperwork (or you can take up origami if you insist!)
3.) Cash holds a special significance.
4.) No VAT to pay on credit/debit card transactions.
5.) Less income tax to pay.
6.) Call-out charges are 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} cheaper.
7.) More competitive, more customers.
8.) You can afford regular holidays for a change.

additions =

9.) I’m no longer an unpaid Tax Collector.
10.)No inspectors calling spending hours of my time trying to spot errors.
11.)I can clear my loft of 6yr old paperwork and never have to add any more.
12.)I can afford Christmas.

😀

[bazza500]

Re: VAT De-registration

Okay, I`ll give you No.9

but 10? I`ve not had a VAT inspection in 16years

11. You still have to keep your paperwork for the Income Tax

12. So can I 😀

One out of 12 is not bad.

[kwatt]

Re: VAT De-registration

I’d have to agree with Barrie Martin but there’s another couple of total contradictions on your list…

If, as you say in No1, your profits increase by 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} as a result of deregistering for VAT how then can No6 also be true as, regardless of how you slice it you can’t have your cake and eat it?

No3, doesn’t matter whether you’re VAT registered or not, if you don’t declare a cash transaction then you just don’t declare it, whether there’s VAT in there or not is entirely irrelevant.

No4, you can’t claim VAT back on them either… or anything else, like fuel, office equipment, a van etc.

No7, not really I don’t think and, if you do contract work for other businesses it can be a disadvantage.

No8, I can’t fathom how not being VAT registered holds any bearing on your ability to have holidays.

N09, as Barrie says is a fair point.

No10, ditto, I’ve not had a VAT inspection in over a decade and it would appear that it is rarer these days for small businesses to be targeted.

No11, there is (IIRC) stipulations on how long you have to keep paperwork regardless of whether or not you happen to be VAT registered.

No12, again, I can’t fathom how this has a bearing on VAT registration.

K.

[Martin]

Re: VAT De-registration

kwatt wrote:I’d have to agree with Barrie Martin but there’s another couple of total contradictions on your list…

Yes I’ve spotted where it may appear contradictory and the addendum reads as follows:

1.) Your profits increase in spite of not being able to reclaim 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} VAT on outgoings.

kwatt wrote:No8, I can’t fathom how not being VAT registered holds any bearing on your ability to have holidays.

Having holidays and affording holidays are quite different. For years I took the usual 2 weeks off using my credit card and paying later. Now I pay up front. Enjoyed for the first time in my entire working (tax paying) life, 3 weeks in New Zealand, all inclusive in Cyprus, Italy and Barbados. 8)

kwatt wrote:No11, there is (IIRC) stipulations on how long you have to keep paperwork regardless of whether or not you happen to be VAT registered.

That’s true, 6 years in fact, no change to my record keeping there. What has changed is no longer do I have a veritable pile of paperwork attached to copies of my quarterly VAT return forms. My loft timbers are much lighter now that’s for sure. I’ll be cheeky here in guessing that the weight is perhaps about 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} lighter? 😈

kwatt wrote:No12, again, I can’t fathom how this has a bearing on VAT registration.

See item 8 🙂

All those years I wasted by being VAT registered in spite of my annual turnover being way way under the VAT threshold. All those £1,000’s of pounds in VAT I collected for H M Customs & Excise. All the worry, stress, shuffling money from my VAT account to my Income Tax account in order to satisfy the payment deadlines. Taking holidays by credit card, not being able to sleep at night worrying over making ends meet when the phone doesn’t ring…..and so on….all because of VAT.

There’s no contradictions in the previous paragraph, just incontrovertible fact.

HAPPY CHRISTMAS!!!!

Martin

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