Vat questions help please

jasushaw

Hi all

I recently started my own business and my accountant registered me for vat but it has me a bit confused...

Say I as a contractor carried out a job for a vat registered builder, do I charge him vat on my services?. And if i wasn't vat registered would I not be better off since I just charge for my services with out the vat on top.

Same goes to a private customer. If my job costs 5000 when I'm not vat registered.
And if I am vat registered it would be 23% more. Do that make a person who isn't registered for vat more likely to get the job?

L.Jenkins

Just to ask the question, I probably already know the answer to. Are you sub-contracting through this builder. I believe that if you are, RCT applies and the builder should be paying VAT on your behalf.

As for VAT registration, I take it that you do a lot of work on your own?

jasushaw

L.Jenkins wrote: »

Just to ask the question, I probably already know the answer to. Are you sub-contracting through this builder. I believe that if you are, RCT applies and the builder should be paying VAT on your behalf.

As for VAT registration, I take it that you do a lot of work on your own?

Yes it would be sub contracting. Well at the moment it's mostly work for myself yes but in the future it would probably be more sub contracting

The_Pretender

What are you expecting your sales to be like? If you’re providing a service the threshold for registering for VAT is €37,500 for the year or €75,000 for supplying goods. If you pass this value then you must register for VAT. Also, if you don’t register for VAT you can’t claim it back on any of your purchases.

lakill Farm

jasushaw wrote: »

Hi all

I recently started my own business and my accountant registered me for vat but it has me a bit confused...

Say I as a contractor carried out a job for a vat registered builder, do I charge him vat on my services?. And if i wasn't vat registered would I not be better off since I just charge for my services with out the vat on top.

Same goes to a private customer. If my job costs 5000 when I'm not vat registered.
And if I am vat registered it would be 23% more. Do that make a person who isn't registered for vat more likely to get the job?

Would you not be picking up the phone and asking your accountant ?

Any of our clients in the rct /vat game pick up the phone and ask us the question .

lakill Farm

jasushaw wrote: »

Hi all

I recently started my own business and my accountant registered me for vat but it has me a bit confused...

Say I as a contractor carried out a job for a vat registered builder, do I charge him vat on my services?. And if i wasn't vat registered would I not be better off since I just charge for my services with out the vat on top.

Same goes to a private customer. If my job costs 5000 when I'm not vat registered.
And if I am vat registered it would be 23% more. Do that make a person who isn't registered for vat more likely to get the job?

Would you not be picking up the phone and asking your accountant ?

Any of our clients in the rct /vat game pick up the phone and ask us the question .

jasushaw

lakill Farm wrote: »

Would you not be picking up the phone and asking your accountant ?

Any of our clients in the rct /vat game pick up the phone and ask us the question .

Tbh the accountant I have isn't very helpful. Could take 3 weeks to return post to me and just trys to fob me off really

bossdrum

jasushaw wrote:

Say I as a contractor carried out a job for a vat registered builder, do I charge him vat on my services?. And if i wasn't vat registered would I not be better off since I just charge for my services with out the vat on top.

It won't cost the builder anything extra if you are vat registered because you don't charge him vat as he will register you as a subcontractor and even if you did he can claim the vat back.

jasushaw wrote:

Same goes to a private customer. If my job costs 5000 when I'm not vat registered. And if I am vat registered it would be 23% more. Do that make a person who isn't registered for vat more likely to get the job?

Yes a person not registered can do the job cheaper in the eyes if the customer but you will probably only be charging 13.5% anyway.

jasushaw

bossdrum wrote: »

It won't cost the builder anything extra if you are vat registered because you don't charge him vat as he will register you as a subcontractor and even if you did he can claim the vat back.



Yes a person not registered can do the job cheaper in the eyes if the customer but you will probably only be charging 13.5% anyway.

Ah I see I just wasn't sure how it worked with builder and vat and I thought it was 23% for a customer.

Thanks a mill