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• 05.12.09
  VAT: an overview VAT explained | (2)

  You only charge VAT - and can only reclaim it on goods or services that your business buys - if you are registered for VAT. If you are registered, then you must hand over the difference between what you charge and pay in VAT to the government. You MUST register for VAT if your turnover exceeds (or is likely to) the VAT threshold - currently £68,000 a year (see below). Remember: if you're not VAT-registered, you can't reclaim VAT that you pay when you buy things. If you have any questions, you can call the VAT helpline on 0845 010 9000 from 8am to ...

  Tagged: vat
  
• 05.12.09
  Flat rate VAT scheme: overview Flat-rate VAT scheme | (0)

  The flat-rate VAT scheme (FRVS) makes small business lives easier (there's more information on the HMRC site). Rather than recording the VAT on every transaction you make (EG goods and services you pay for and offer), you just pay a set percentage of your turnover. This saves you loads of paperwork. The percentages vary by industry - and if you're particularly efficient (ie you spend less than usual on raw materials), you could end up making a profit on VAT! (And vice versa of course...). The downside is that you can't reclaim VAT you've paid - but this is already allowed for in ...

  Tagged: flat rate vat, FRVS, vat
  
• 05.06.09
  Sole trader: pros and cons Company, partnership or sole trader | (13)

  Being a sole trader is the easiest way to start a business - there are fewer reporting requirements than if you set up as a limited company, for instance (although you do have to register as self employed at the HMRC). And accounting is much easier (and hence bills for accountants are lower). Sole trader: overview However, if you're a sole trader, then YOU are the business: Its profits are your income (so you may not able to easily minimise your tax bill). Its debts are your debts. And its mistakes are your mistakes - you can be sued and made personally liable if something ...

  Tagged: Income tax, NI, self employment, sole trader, vat