How do you account for turnover??

February 27th, 2012, 10:30 am

Eatsweets wrote:Jon

Turnover is total sales, so all the money in the machine.

Commission goes down as a fixed cost along with your stock, premises etc..

You declare the vat on your total turnover but obviously you claim back all the vat on your purchases.

After you strip out all your costs the figure you are left with is your profit, which you would then pay tax on.

This is 100% correct. But are you guys all telling me you are registered for VAT. If you're not exceeding the turnover threshold why bother. Then it does away with the hassle of charging VAT and paying VAT. Commission is then just an expense. And as far as the site owner is involved he can include it as misc income if he wants to. Or as most do, pocket it. It's too small to worry about anyway.

Post by **Snackmore** » February 27th, 2012, 11:19 am

what is the VAT threshold is it £20,000?

February 27th, 2012, 11:36 am

£70000 ish

Post by **Snackmore** » February 27th, 2012, 1:55 pm

be a while then, thanks

Post by **Venderbase** » February 27th, 2012, 2:56 pm

There is an exception. I registered for VAT even though I was below the threshold.
You get to claim back most of the VAT you've paid in the previous 3 years, so you get a nice lump sum.
Then after a couple of years you deregister.
Worked out nicely for me.

Post by **dorsetvending** » February 27th, 2012, 3:23 pm

How does that work then? Say i have t/over of 65k so below the threshold but still register for VAT. Do i then go on to pay flat rate of certain % or do i carry on as normal and have no obligations to VATMAN?

Post by **Venderbase** » February 27th, 2012, 4:21 pm

If you register for VAT, then you follow the rules of VAT.
You'd register for the flat rate scheme and hand the VAT man the percentage of your turnover (not sure what it is now, I think it was 3%) but you also get a 1% discount for your first year. So your payments on 65k would be £1300-£2000/year.

When you deregister, your have to pay back the VAT on the value of anything you originally claimed the rebate on (unless the payment is less than £1000 then you pay nothing).

When I worked out my rebate and estimated my VAT payments, it worked out that I would be better off for 10 years! At which point the VAT I pay would have gone passed the rebate I got.

After 3-4years my machines where valued at less than £6000 meanning the VAT value was less than £1000 so I could deregister without paying anything back.

Post by **dorsetvending** » February 27th, 2012, 4:36 pm

Thanks Daz

Post by **Venderbase** » February 27th, 2012, 4:43 pm

If anyone is considering registering for VAT to get a nice rebate, the best time to do is is just before 3 years after your biggest purchse.

Coin Operated Group

How do you account for turnover??

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