Update on what I've bought

[Quattromike]

Unfortunately technically it's vat fraud so you should either become a business and do plant related work or just suck it up and pay the vat. HMRC will probably take a dim view (if your lucky) of someone starting a company to claim back vat on a digger for personal use plus with the latest crackdowns on vat fraud. If you register and then have a 4k reclaim a tax inspector WILL come knocking on your door

we've been getting our arse felt from the HMRC this year for when you provide service and materials its Zero Vat and where its just materials its +Vat or something along those lines. be careful how you go.

 

[deuce22]

Thanks for the advice.

 

[Brendan]

Thanks for the advice.

It's just probably not worth the hassle, you'll have to register with companies house, do the yearly return, the 4 vat returns during the year - at which point you will be flagged for only having a vat refund. If you do put work through the company depending on how you claim for the machine and any profit you'll have corporation tax and then to top it off at the end if you decide to sell the machine you will have to pay vat from the sale.
So considering machines without vat are not far off the final price of machines with vat added it's probably not worth the agro

 

[Jimoz]

I'm more often than not claiming vat back as newbuild. First return or two I did get a phone call off a vat inspector and he wanted some invoices sending over-like me 4 largest that quarter. Think they're just used to the pattern now.

 

[fred]

I'm more often than not claiming vat back as newbuild. First return or two I did get a phone call off a vat inspector and he wanted some invoices sending over-like me 4 largest that quarter. Think they're just used to the pattern now.

They get the detail of every purchase invoice with every vat return now as it all has to be done electronically.

They know for your sector and turnover roughly what vat you should be claiming or paying, stray out of this bracket and you get a visit.


VAT is the one tax you don’t want to fiddle as HMRC have more powers than plod

 

[doobin]

I'm fully expecting a vist one day as I take f**k all out of the business ( I live cheap) and spend most of it on new toys...