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Beginner VAT questions - any input appreciated!

  • 14-08-2020 11:58AM
    #1
    Durtburd
    Registered Users, Registered Users 2 Posts: 37 ✭


    Hi all

    I am a PAYE worker and about 6 months ago I began working as a self employed subcontractor in addition to my 9-5 job.

    I have some questions about VAT.

    I haven't registered for VAT and am not sure I will. My annual turnover will never exceed 10-12k.

    As I'm a subcontractor, my contractee handles the VAT payable by the end consumer for the goods and services delivered by me. If I register for VAT, I will need to invoice my contractee for the VAT on my fees - correct? Would this be necessary in light of the fact that I don't reach the VAT threshold?

    If I register for VAT, can I reclaim VAT on eligible expenses incurred before I registered?

    Do I need to invoice for and pay a certain amount of VAT before I can then reclaim VAT on my own expenses?

    I'm thinking of purchasing an electric car for this business. I believe the max VAT reclaim on this would be 20% of the VAT paid (if paid on the transaction at all) - is this correct?

    What if I were to buy a 'VAT qualifying car from the UK - could I reclaim any more?

    I'd appreciate any advice anyone can give me as I haven't got a clue about any of this!!


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