DSF

WorthDoingRight;55701 wrote:Well I would be happy to make more profit so that I could be taxed more

Anyway you cut it the tax is never more than the extra profit you will make. If you were taxed at 40% of £1 then it still leaves 60p more in your pocket!

That is relevant whether you are vat registered or not though.

What 20p its all accounted for

Charlie_;55760 wrote:What 20p its all accounted for

Sorry just seen the post after the one replied to opps sorry Richard

Andrew;55749 wrote:That is relevant whether you are vat registered or not though.

Yes, my answer was nothing to do with the VAT question (other than if you were lucky or unlucky enough to need to be VAT registered)

There are lots of variables to take into consideration when thinking about VAT registration but if you just make items to sell to end users as gifts etc then it is highly unlikely that being voluntarily registered would be an advantage.

Charlie_;55761 wrote:Sorry just seen the post after the one replied to opps sorry Richard

No worries, VAT is confusing!! Just think ourselves lucky that at 20% it is easy to work out!

WorthDoingRight;55764 wrote:No worries, VAT is confusing!! Just think ourselves lucky that at 20% it is easy to work out!

yup far simpler than the 17.5% lol

The irony is that the only/best time to be registered it when you start up and buy all the kit, - so can claim back on capital expenses.
We use the simplified/flat rate scheme (7% on ALL sales I think - for t/o upto £160k I think)
This scheme saves us about 5k pa on vat.
I do know some (very) large businesses that flip - register - buty heaps of stock upfront, then deregister and run for a year, then do it again, - never understood the principal of this thou.
As a generalisation, - the higher the markup, - the less reason there is to be registered.
Our personalisation business has a high(ish) markup, - so the vat we can reclaim back on inputs is small compared to what we collect on sales, hence it would be better to not be registered, but since we are over the threshold.
As a wise (rich) man once said, 'If you don't want to pay as much tax, - don't work as hard'

logobear;56125 wrote:
As a wise (rich) man once said, 'If you don't want to pay as much tax, - don't work as hard'

Loves the quote...................... tha'ts what i'm doing wrong then