hi lads hope you have all had a good xmas and lets hope we all have a better 2010 got paid at last hmmm! i need some advice reguarding vat my accountant is pants looking for another monday no help and no advice from him i no you pay vat on everything you earn should i be putting the full amount of vat aside to make sure i have covered it everytime i get paid or should i be i at least be taking of the vat i paid on fuel any advice please keep it simple just dont want to get stung putting to much or to little aside
Hi lee matt iknow of a good accountant he can help with your bookwork. regards MJC
you only give the vat man back the diference between what you earn and what you spend, after a while you realise that if your earnings are nearly always the same and your outgoings are nearly always the same then the vat you pay back will nearly always be the same, i know now that my vat bill every quarter is always about £2500 to £2800, i have a savings account linked to my buisness account and every month i stick 1k in there and then transfer back at the end of the quarter whatever i need to settle the vat bill, i,ve done it this way for 7 years now and theres always a couple of hundred quid leftover at the end of every quarter so if i have a particularly lean spell theres always a little bit in there to help me out, as for accountants ive had an expensive one in a flash office who wanted 1200 quid a year for doing nothing, now i have a girl who does it all for me at the end of the year for £300
As has been said you pay the difference between the VAT you add to invoices and the VAT you pay out. Your suggestion of taking the amount you get on your invoice and deducting the amount you pay on fuel and putting it to one side is probably not a bad idea to start with as it will cover your VAT bill with a bit to spare. Once you’ve been going a bit you’ll start to know how much your VAT bill will be and you can budget for it a bit more accurately.
Paul
thank you that helps me out whilst ive been off ive been trying to get on top of things namely the paperwork side of things and getting no or very little guidence and top that with changing garages aswell its been fun
Lee, you mention changing garages?
is that your maintainance garage?
if it is your designated maintainance contractor for your operating licence, you MUST inform VOSA of the change
thanks sorted that new garage is forwarding all relavant paperwork to vosa not completely fallen out with the one i was using but they dont seem very keen (at the back of the queue) so i found one that is
i put 10% of each payment in business savings account and then when vat is due i usually have a few quid spare come vat return. as others have said my vat is usually around £4000 to £5000 so after a few returns you should have a good idea as to where its at.
from the 1st of Jan it’s back upto 17.5% as well… you’ll know this but I thought I’d better mention it. 
chaversdad:
now i have a girl who does it all for me at the end of the year for £300
Yes, but what about your accountant?! 
hammer:
chaversdad:
now i have a girl who does it all for me at the end of the year for £300Yes, but what about your accountant?!
she is a bit of a stunner as well, wonder if i can put some “extras” down