VAT and Income Tax

MrPablo

Hi all,

New user to boards, been doing a bit of reading of other treads and was wondering if anyone could give me a bit of input. I started a business this year (about 6 or so months ago), I deal with both end users and non & vat reg`d business customers. I`m not registered yet as I`m not near the threshold. I`m reading about registering and the pros/cons of it. Would it be worth my while registering now before reaching the limit or should I wait? I know it would mean me either raising prices for non vat reg`d end users or absorbing a bit of the price myself but on the other hand it`d mean I`d be able to be a bit more attractive price wise for business users.

Also for self assessment income tax, I was on ROS and was a bit confused with the taxation periods, would I be right in assuming that since I only started self employment this year that I`ll be only paying tax for this year, next year?

Avatar MIA

MrPablo wrote: »

I`d be able to be a bit more attractive price wise for business users.

Why do you think that?

Beasty

If the OP is able to recover input VAT they can possibly reduce the price they charge their customers, albeit on a pre-VAT basis and still make the same (possibly more) profit. If those customers can fully recover the VAT it costs them less

OP, no-one can provide professional advice on Boards, and you should speak to your own advisers directly about your specific circumstances.

veetwin

MrPablo wrote: »

Hi all,

Also for self assessment income tax, I was on ROS and was a bit confused with the taxation periods, would I be right in assuming that since I only started self employment this year that I`ll be only paying tax for this year, next year?

In 2018 you will have to pay tax on earnings made in 2017. However your will also have to pay preliminary tax on 2018 earnings similar to the amount you paid for 2017.

exaisle

OP..it sounds like you haven't yet engaged the services of an accountant.

I suspect that now would be a good time to do so, although this time of the year tends to be a bit bedlam in most practices...

Licherandkebab

I'd register for VAT now if you expect to be making enough in the near future that will mean you have to register. The only downside is paying the accountant a bit extra.

As for getting advice from an accountant, you should do it in thr next week or 2 before things start to get really busy.

Rioga na hEireann

Licherandkebab wrote: »

I'd register for VAT now if you expect to be making enough in the near future that will mean you have to register. The only downside is paying the accountant a bit extra.

As for getting advice from an accountant, you should do it in thr next week or 2 before things start to get really busy.

this is excellent advice, but for those that are not sure - always remember that registering for VAT, when you're not making enough money - is the killer that puts people out of business!