We are getting very close to vat threshold, we only sell to end user so we would have to increase turnover substantially to make the same. Might have to take the whole of December off
We are getting very close to vat threshold, we only sell to end user so we would have to increase turnover substantially to make the same. Might have to take the whole of December off
Just to mention the VAT flat rate scheme - apologies if everyone's already familiar with it.
You can register for it if VATable turnover under 150k (but can stay in it if you subsequently go above that up to another limit)
you can't claim the VAT back on your purchases - except for capital items over around £2,000 I think
BUT - while you charge your customers 20%, you only pay your VAT returns at a lower fixed rate - there's a long list of specific activities/rates
- Printing for example is 8.5%
So there's a lot less paperwork and life is simpler - and it's a score for some businesses especially if you're not buying loads of supplies but you add more value to your products
There's quite specific rules - the aim is the Gov still gets about the same amount of VAT overall, but there are winners and losers
www.gov.uk/vat-flat-rate-scheme
.....snore...blimey, sent myself to sleep with this, can you tell I've been looking at VAT issues for other purposes?
The reason for Paypal requesting additional information is not really to assert that you are a limited company but to check who you actually are under the Money Laundering Act.
As a financial institution after you hit about £10,000 or E15,000 the institution is required to do additional checks as to who is processing money and moving money around.
Requesting VAT number is one way of doing this but they have other ways of checking if you contact them. I had to provide my Tax Reference number from the Inland Revenue.
Of course if the movement of money passing through your Paypal account is greater than the VAT limit you might find that Paypal will have no choice but to disclose that to the VAT man.