VAT question on the flat rate scheme in relation to charging for materials

[the_d_o_t]

Hi Guys
i just want to double check before i go ahead that i have this right, i have just gone on the flat rate scheme for vat and i have just realised that if i pick up and make purchase of a boiler for say £1000 from my supplier and only charge the customer the £1000 that i paid for it.

with the 9.5% rate i am on i will have just lost out on £95 to HMRC is that correct?

thanks

Worsley

 

[Harvest Fields]

Not VAT registered mate. But sure someone that is will be along shortly.

 

[rpm]

Anyone know of a forum for accountants? Going to need some help soon.

 

[SimonG]

Why on gods earth would anybody be selling goods on for what they paid for them. It's business not a charity.

 

[Harvest Fields]

Why on gods earth would anybody be selling goods on for what they paid for them. It's business not a charity.

Might not have been doing it long or lots of plumbers in area and to stay competitive?

 

[rpm]

Might not have been doing it long or lots of plumbers in area and to stay competitive?

Been here for 7yrs Harvest and even if lots in the area that is no way to run a business.

 

[Harvest Fields]

Been here for 7yrs Harvest and even if lots in the area that is no way to run a business.

Keep forgetting you can see how long people have been on here 🙄 my bad. Also I understand mate, you are right.

 

[the_d_o_t]

No guys i agree completely, i always intend on making a profit on materials, but there is them situations where you might be willing to do the boiler at cost just to get the job or if its a friend ect

i just want to make sure that i am not stinging myself in the process if that is the case.

the amount of customers who are internet surfers these days can find out the cost of boilers online ect

 

[Harvest Fields]

No guys i agree completely, i always intend on making a profit on materials, but there is them situations where you might be willing to do the boiler at cost just to get the job or if its a friend ect

i just want to make sure that i am not stinging myself in the process if that is the case.

the amount of customers who are internet surfers these days can find out the cost of boilers online ect

I don’t care how much it is online. Is what I say In so many words.

 

[bentoncollier]

The amount of Value added tax (VAT) a business pays the HMRC or claims back is actually the difference between the VAT charged on the invoice for the goods and services sold to the customer and VAT charged on the inwards invoice received by the business on its purchases. By using a flat rate VAT scheme: