I’m new to VAT, and my company is likely to hit the threshold very soon. So I’m trying to plan ahead & wondered if I need to show a breakdown of VAT on my estimates or if I can just show a total cost figure (including the VAT). I’m concerned that if I highlight a VAT cost on my estimates, it may put people off and lead to them searching for un-registered companies who will be 20% cheaper. Any advice welcome
im not saying I’m going to charge VAT yet, I just wondered if I had to show it on my estimates once I am registered and charging VAT, or if I could just show it as total cost inclusive of VAT, without a breakdown.
Ok I understand your question but you should use actual figures (and hardly estimates). You look at your past turnover during a rolling 12 month period OR turnover for the 30 days alone if it reaches the VAT threshold.
The turnover is VAT exclusive (not including VAT) in your numbers.
Exempt supplies are excluded from your turnover for VAT registration purposes. But beware if you use the Flat Rate Scheme, because such income is included as ‘business income.’