quick question


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Hi, I am going to set up a limited company selling used mobile phones. I want to be VAT registered but I do not want to have to pay VAT on my sales as I will be buying phones for cash, which would be the best scheme to go on? Your help is much appreciated. Thanks
 
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If you are VAT registered then you will have to account for VAT on your sales.

The question I would ask before register for VAT voluntarily is whether my customer can recover the VAT themselves (i.e. are they VAT registered themselves). If most are VAT registered then your customers will not worry too much about you adding VAT on to your sales.

If you want to reduce your VAT liability, you could look at the flat rate scheme and the cash accouting schemes.
 
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You cannot reclaim vat on your purchases and NOT charge VAT on your sales unless the phones are exempt/partially exempt; which they are not.

You don't need to register until your sales/turnover reaches about £80k (cannot remember exact amount). So you should not register until you reach this threshold.

If you are buying second hand phones from the public there will be no VAT content there anyway.
 

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