VAT for new sole trader

duckcfc

I've just set up my own business as a sole trader for working as a handyman but wondering if I'm OK to register for VAT. My funds for starting out have been stretched to the max and can afford an accountant so thought I'd ask here.

Here's what my work will involve , plastering, tiling, block laying, foundations for garden walls, extensions, painting, stonework, sand cement screeds, concrete footpaths, some plumbing work(bathroom installation)

I'm also in receipt of the back to work enterprise allowance and will be for 2 years.

Velocity_Girl

If you think your sales will exceed €37,500 in a year you need to register for VAT, if your sales won't be this high there is no need to register.

duckcfc

Velocity_Girl wrote: »

If you think your sales will exceed €37,500 in a year you need to register for VAT, if your sales won't be this high there is no need to register.

No I cant see me hitting them numbers for a few years yet.

Can I not claim back on materials bought, fuel tax, and other vat spent even if under the 37.5k ?

relax carry on

duckcfc wrote: »

No I cant see me hitting them numbers for a few years yet.

Can I not claim back on materials bought, fuel tax, and other vat spent even if under the 37.5k ?

You can elect to register for vat to claim input credits but you will have to then charge vat on your sales.

http://www.revenue.ie/en/tax/vat/guide/registration.html#section10

Gard1

duckcfc wrote: »

No I cant see me hitting them numbers for a few years yet.

Can I not claim back on materials bought, fuel tax, and other vat spent even if under the 37.5k ?

It all depends on who you will be carrying out the work for.
As a rule of thumb if you are carrying out the work for the general public rather than businesses or builders then you are better off not registering for vat until the turnover demands for you to do so.
While you cannot claim back the vat on the materials etc, if you are making any level of margin then you will end up paying more vat than you can claim.
Also not being registered has its advantages with the public. Say you want €1000 for a job. If you are non registered you get the 1000 if you are registered you either have to charge the customer 1135 or suffer the vat and get 881 into your pocket

duckcfc

Gard1 wrote: »

It all depends on who you will be carrying out the work for.
As a rule of thumb if you are carrying out the work for the general public rather than businesses or builders then you are better off not registering for vat until the turnover demands for you to do so.
While you cannot claim back the vat on the materials etc, if you are making any level of margin then you will end up paying more vat than you can claim.
Also not being registered has its advantages with the public. Say you want €1000 for a job. If you are non registered you get the 1000 if you are registered you either have to charge the customer 1135 or suffer the vat and get 881 into your pocket

Thanks. I was told from others that I could claim back vat on materials bought for jobs I'll be doing.

Citizenpain

yes you can claim back vat... if you are vat registered

But you would also have to charge VAT to your customers and give this to revenue