Forums
New posts
Search forums
What's new
New posts
New media
New media comments
Latest activity
Media
New media
New comments
Search media
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Main Forums
Electrician Talk Forum
How Do You put Your Materials Through Company
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Help Support Talk Electrician Forum:
This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
Message
<blockquote data-quote="mort2376" data-source="post: 552129" data-attributes="member: 25787"><p>The vat bill will only apply from the point he went over the 85k. </p><p></p><p>The procedure is still the same as being a sole trader it's just the limited company buying the materials.</p><p></p><p>The difference is VAT is now shown on invoices and charged on everything.</p><p></p><p>Example</p><p></p><p>Materials cost £100 plus vat = £120.</p><p></p><p>The invoice shows....</p><p></p><p>Materials @ £120 ( including a 20% markup)</p><p></p><p>Labour @ 40 for an hour</p><p></p><p>Sub total = £160</p><p>Vat @ 20% = £ 32</p><p>Invoice total £ 192</p><p></p><p>Of that you pay to the vat man £12 as your claiming back the £20 of vat you paid at the wholesalers.</p><p></p><p>There are different vat systems depending on what works best for you. You can pay as little as 5% on everything I think and this saves working out what you paid and charged, but it's only available upto a certain threshold.</p><p></p><p>People get very uptight about VAT but it is pretty simple and if your unsure I've always found the tax people really helpful.</p><p></p><p>They aren't there to try and catch you out or trip you up. However if you do piss them off they can make life very difficult.</p></blockquote><p></p>
[QUOTE="mort2376, post: 552129, member: 25787"] The vat bill will only apply from the point he went over the 85k. The procedure is still the same as being a sole trader it's just the limited company buying the materials. The difference is VAT is now shown on invoices and charged on everything. Example Materials cost £100 plus vat = £120. The invoice shows.... Materials @ £120 ( including a 20% markup) Labour @ 40 for an hour Sub total = £160 Vat @ 20% = £ 32 Invoice total £ 192 Of that you pay to the vat man £12 as your claiming back the £20 of vat you paid at the wholesalers. There are different vat systems depending on what works best for you. You can pay as little as 5% on everything I think and this saves working out what you paid and charged, but it's only available upto a certain threshold. People get very uptight about VAT but it is pretty simple and if your unsure I've always found the tax people really helpful. They aren't there to try and catch you out or trip you up. However if you do piss them off they can make life very difficult. [/QUOTE]
Insert quotes…
Verification
Post reply
Main Forums
Electrician Talk Forum
How Do You put Your Materials Through Company
Top