Hi guys,

We have just become VAT registered and wondered if you had any tips that newbies fall foul of?

Our accountant is doing the VAT return for us as I wouldn't have the foggest but I plan to account each month so I can put the money away to pay the bill.

We import from Europe and the Far East.

Thanks in advance

Stu
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Don't be in a hurry to pay, they will wait for a month, two if you phone up and fob them off. Make good use of the cashflow this provides.
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Ive opened a seperate account to my normal business account. Every week i transfer some money into it so when the VAT bill comes i just take the money from my 'VAT' account to pay for it.
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just remember that the vat you collect on sale is not and never is your money - you just act as an unpaid tax collector.

Can't go far wrong then ;)
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you will get a benefit from Europe, if the supplier is also VAT registered - you wont have to pay their local VAT - this improves cashflow.

Get a (Pseudo) TURN from HMRC and ensure you get C79 certs for EVERY import - samples, stock etc.
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I would recommend you keep closer tabs on your accounts to enable you to be fully aware of both the vat bill and monthly profit and loss. By being close in touch you avert surprises in bills higher than expected and the financial problems they might present.

You have the right attitude to be successful by planning your financial path. Consider being more involved as the closer you are involved the more successful you will be. Using the services of an accountant is fine but remember he is crunching the numbers and advising. You are the one running the business and the one that determines what services you buy in and what you pay, but at the end of the day the accountant is servicing your needs not providing the missing link.
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If you import, Import VAT will apply. Make sure that the importation is done in your name and uses your VAT number. If you use a transporter, chances are they will use their own VAT number and then charge you for the Import VAT as an expense.

If you get the C79 with your name and VAT number on it, you can then reclaim all the VAT you pay on importation. If you just get an invoice from your transporter, you can't reclaim the import VAT. Discuss it with your transporter, explaining that you now have a VAT number - they are usually pretty good.

As for sales, make sure you state VAT separately on sales invoices and give the VAT amount in sterling. It depends where you sell the goods. you might be entitled to zero-rating; you might even be able to use the pre-sold goods simplification, if your customers are overseas EC VAT registered businesses.
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Don't be in a hurry to pay, they will wait for a month, two if you phone up and fob them off. Make good use of the cashflow this provides.

:DLol:D (made me chuckle anyway)


Steve
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It's the way it is Steve, I think all these people with their separate bank accounts for the VAT are mad, get the money working for you before the VAT man sees it.

Same principle with suppliers, pay 'em at the last possible minute and pay the one who shouts loudest first.

It's all a game, innit!!!
;)
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Don't be in a hurry to pay, they will wait for a month, two if you phone up and fob them off. Make good use of the cashflow this provides.

WHAT?

You have to give the money back I thought it stood for Value All Tips. So I did, very valuable.

Bloody French and their silly ideas, liked the principle but as ever the greedy ******** in power corrupted the idea!
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I'm considering starting up in business as a finance consultant, help out all them poor misinformed people so keen to pay the taxman!!!

They could pay me instead!!!

:)
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