James Kilty wrote about registering for VAT:
>I was advised to register, even though my
> income is less than the limit as I am a sideliner. I was not taught this
> on my business course. I am still thinking about it - you have to do a
> more regular return which adds to the paper work and there are fines if
> you are late.

James
My advice would be to register.  The paperwork is a simple quarterly return
with just nine totals to fill in.  Four will be 'none' if you have not sold
anything carrying VAT and one is for acquisitions from 'other EC member
states, so is usually none.
My return therefore normally consists of four totals:
VAT reclaimed on purchases
Net VAT to be paid by Customs to me
Total value of all sales excluding VAT
Total value of purchases excluding VAT

Given that you need income and expenses figures for the Inland Revenue
anyway, it is just a matter of separating out the VAT content - hardly a
very onerous task.  I use an Excel spreadsheet and have added one column for
VAT.

The only complication, if you can call it that, is with apportioning the VAT
on fuel.  Here you have two choices:
Pay a charge and then claim back all VAT on fuel, regardless of 'private'
mileage
Keep a record of journeys and then claim a proportion bases on business use.

I chose the second option as my private mileage is the Land Rover is
virtually non-existent.

The return takes, literally, just a few minutes each quarter and a payment
from Customs arrives in the bank account about two weeks after sending it.

Now for the best bit: when you first register you can claim back for the
previous three years!  That did take me an hour or two - but was time very
profitably spent!

Peter Edwards
[log in to unmask]
www.stratford-upon-avon.freeserve.co.uk/

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