Im am thinking about setting up a small shop on ebay/the Internet, but am completely baffled as to weather i need to register or charge for VAT. I also have no idea if when i buy items from a wholesaler i will automatically be charged VAT or if i have to give them a VAT number?
Dose anyone know im what cases you can claim back the VAT?? Do you have to to be register?
Oh and do i have to register as being self employed before i can start selling ??? and if so will this effect my tax credits straight away or only after the first year when i am able to say how much i have made ????
Sorry for so many questions but i have been trawling the Internet for days and an just as confused as when i started !!
Thank you in advance for any help that can be given XXX
pop down to your local job centre and ask them about your tax credits etc. You will need to provide the tax credit people with weekly/monthly profits etc - the job centre explain it all well. You will need to register as a business or self employed and fill in tax forms etc - contact the inland revenue who will be able to give you all the info you need.
You will pay VAT on the purchase invoices, ie from your wholesaler, but until you are registered, don't charge VAT on your invoices to your customers. Once you are VAT registered, you claim back the VAT you pay by deducting it from the VAT you have collected from your customers.
Definitely tell HMRC you are now self-employed. As for your Tax credits, I don't know enough about them, but I thought things work a year in arrears?
Just to let you know that i have been in touch with the job center and they where unable to help as i am not claiming any job seekers allowance,but they did put me in touch with a company called venture partnerships and i have an appointment with a business advisor in 2 weeks time. I'm very excited !!