Vat

[pushrod]

Almost all employed people are not VAT registered.
This means that the price they sell for goes into their own pocket. Done deal.
Self employed and business are VAT registered.
This means that anything they sell they have to pay the govm't the going rate of VAT on the sale.
If they sell something for £100 they HAVE to give David C £20. So you pay £120. Simples.
It don't matter what was paid just what was sold.
If you don't want an invoice, pay cash you, will save 20%

Basically you pay 25% income tax, about 12% National Insurance and 20% on everything you buy.

By the way did you know the price of Diesel without HMC duty and VAT is about £0.52

So add in fuel duty of 80p/L and car tax etc and we are getting well and truely shafted!!

[0630154]

No no no , if you buy something by the company , the company owns it ! So wen you sell it you sell it with the vat and get an invoice , no csh deal can be done , or you will be paying the vat out your company and your accountant will pick up on it wen you do your year end accounts . Simples

[pushrod]

No no no , if you buy something by the company , the company owns it ! So wen you sell it you sell it with the vat and get an invoice , no csh deal can be done , or you will be paying the vat out your company and your accountant will pick up on it wen you do your year end accounts . Simples

What accountant have you got? LOL
Reclaiming VAT paid on purchases is completely independant of any sales.
You are of course 100% right on selling.
VAT should be charged and an invoice issused. You should then also pay the full rate of income tax and or corporation tax on any profit.
Don't be doing a Boots now.
Also if you use self employed tradesmen on a contract collect and pay their tax to/for the government.
Don't forget to direct debit your business rates and council tax, keep an eye open incase you need to pay any capital gains tax or inheritance tax.
And as you travel down to number 11 Downing street with a large chq for Alistair Darling, you can be happy in the knowledge you have already lined his pocket with Insurance premium Tax, Road Tax, Fuel Duty, Air passenger Duty and a Climate change levy

But don't worry, he's going to give it all to a fat banker to **** it against a wall.