V.A.T

[LYT4X]

Originally Posted by spink

Dont forget the benefits of being vat registered though,ie claiming back the VAT on just about everything you buy,business related or not

If you have ever endured a VAT inspection (I've had 4 in 12 years) you would know that it isn't as easy to do this as you might want to believe. The phrase employed is "wholly and exclusively for business purposes". If it isn't, then you will be hit for six by HMRC. I'm pleased to say that I've never had to worry about this as I take my VAT responsibilities very seriously. It simply isn't worth trying to abuse the system.

[spink]

I know what you are saying,i can only presume the people i have heard gloating about this havn't had the vatman knocking on their door as yet.

[Isimmo]

Originally Posted by LYT4X

If you have ever endured a VAT inspection (I've had 4 in 12 years) you would know that it isn't as easy to do this as you might want to believe. The phrase employed is "wholly and exclusively for business purposes". If it isn't, then you will be hit for six by HMRC. I'm pleased to say that I've never had to worry about this as I take my VAT responsibilities very seriously. It simply isn't worth trying to abuse the system.

You and us alike, we've religiously accounted for every business expense and only claim back VAT against VAT receipts, as you say, that are "wholly and exclusively for business purposes".

[LYT4X]

Originally Posted by spink

i can only presume the people i have heard gloating about this havn't had the vatman knocking on their door as yet.

There are a few sayings in business but here's one that you may not hear too often......

You can pi$$ about with the taxman to a greater or lesser degree but you don't f**k with the VAT man.

Also, the ones that shout about 'getting away with it' tend to be the same ones who claim to be making loads of money on a high turnover/zero profit business.