Creating a new UK online silver store, need input.
- Thread starter klacey
- Start date
2003dve said:
Ha ha yeah I guess that's what it is. I'm just thinking that if i'm buying in more then I sell, could the VAT work in my favor. I might buy 100+ coins and sell only 50 a month. So i'm paying more VAT then the amount I received, so I get a refund for the difference. Keep to that level and wouldn't I benefit?
Photonaware
Active Member
klacey said:
If that was true I would consider adding assets to my business e.g. a 50-inch flatscreen TV, maybe a new car and some new carpets and furniture etc. and save 20% on all my capital purchases !
We would all start up new businesses tomorrow if there wasn't a catch.
I would be interested in hearing the advice you receive from your accountant though.
Pirocco
Well-Known Member
If you buy 100 ounces then you pay VAT on 100, and if you then sell only 50, you can only get a tax refund for the invoice(s) of those 50, leaving you with having paid tax on the nonsold 50.
And that's a story aside of business profit tax.
VAT serves to make sure somebody (whoever in the chain) pays tax on the sales of goods/services.
Business profit tax is to make sure tax is paid on profits.
As far as I know.
And that's a story aside of business profit tax.
VAT serves to make sure somebody (whoever in the chain) pays tax on the sales of goods/services.
Business profit tax is to make sure tax is paid on profits.
As far as I know.
Photonaware said:
Yeah Photon is correct, but that's all ok if you've got the funds to buy the stuff in the first place on top of buying your sales stock and remember each VAT period is every 3 months before you can claim a refund and it's got to be a genuine business expense.
Rockin'
How you pay VAT to HMRC
You have to keep records of VAT on all purchases and sales you make.
The VAT you charge other businesses or customers when they buy goods or services from you is called output tax.
The VAT other businesses charge you when you buy goods or services from them is called input tax.
You usually fill out a VAT return every three months.
This shows your net output tax and net input tax.
You pay HMRC the net difference between your output tax and input tax - in other words, the total VAT you've charged customers minus the total VAT you've been charged for what your business has bought.
If your input tax is higher than your output tax, in other words you've paid more VAT than you've received from sales, HMRC will reimburse you.
You can fill out a paper return or do it online.
Your VAT payment is due on the same date as the due date for your VAT return (unless you use the Annual Accounting Scheme - see below). But if you pay online you have seven extra calendar days in which to pay.
If you fill out your return online you must also pay online.
If you have a turnover of more than 100,000 or if you're newly registered, you have to fill out your return and pay online.
You have to keep records of VAT on all purchases and sales you make.
The VAT you charge other businesses or customers when they buy goods or services from you is called output tax.
The VAT other businesses charge you when you buy goods or services from them is called input tax.
You usually fill out a VAT return every three months.
This shows your net output tax and net input tax.
You pay HMRC the net difference between your output tax and input tax - in other words, the total VAT you've charged customers minus the total VAT you've been charged for what your business has bought.
If your input tax is higher than your output tax, in other words you've paid more VAT than you've received from sales, HMRC will reimburse you.
You can fill out a paper return or do it online.
Your VAT payment is due on the same date as the due date for your VAT return (unless you use the Annual Accounting Scheme - see below). But if you pay online you have seven extra calendar days in which to pay.
If you fill out your return online you must also pay online.
If you have a turnover of more than 100,000 or if you're newly registered, you have to fill out your return and pay online.
Photonaware
Active Member
klacey said:
Absolutely correct but if the vatman gives you a vat refund that is greater than the receipts he receives say during then next few periods, how long will it take for a visit to your premises / home with a long list of well prepared questions ? They are wise to this and there is no free lunch in the end unless you end up in prison of course.
Photonaware said:
Yeah but I would have nothing to hide, the more I sell the more I can buy to increase stock and just keep repeating. Surely this is how business works. I cant grow without increasing the amount of silver I have to offer. So even if the VATman did come round, everything would be in order. Or am I missing something?
Photonaware said:
That's not how I understand it - please note though that I am not an accountant and my business is not VAT-registered. The first example is correct, the second I think is wrong.
I think it's:
Same sale but VAT registered
You pay 20 for the coin plus 4 VAT so you still hand over 24
You sell for 30 but issue an invoice for 25 plus 5 VAT. Therefore, you get 30.
Your gross profit is 6 (30 received against 24 expended).
You owe the VAT man 1 (the difference in VAT received against VAT paid).
Thus, net profit after VAT is 5.
True, that's less than the 6 in your non-VAT-registered example, but bear in mind if you paid more than 1 VAT anywhere else in your business you're actually better off. And it's not the 33% drop in profits in your example.
B
Byron
Guest
Compliments Klacey on your endeavour, hope it goes great for you.
A couple of minor points that may need tweaking:
On the postage page, under free postage you state "starting from 1.70 per 100 gram".
You also offer money back under the registered mail option. You may want to be more specific and state "the cost of your postage charge - 7 pounds only, will be refunded if order does not arrive on time". Otherwise you may have some clown demanding the full cost of the order.
Have you also thought of getting a solicitor to have a look over things? And maybe look whether some sort of insurance cover may be needed?
These days you never know if someone might come after you legally for some reason or another.
A couple of minor points that may need tweaking:
On the postage page, under free postage you state "starting from 1.70 per 100 gram".
You also offer money back under the registered mail option. You may want to be more specific and state "the cost of your postage charge - 7 pounds only, will be refunded if order does not arrive on time". Otherwise you may have some clown demanding the full cost of the order.
Have you also thought of getting a solicitor to have a look over things? And maybe look whether some sort of insurance cover may be needed?
These days you never know if someone might come after you legally for some reason or another.
AhanWolf said:Hi Klacey, new forum member here I'm UK based and relatively new to silver stacking. Just wanted to wish you luck on the site as we def need more competative independant sellers on this side of the pond . Looking forward to makeing a purchase when it fully kicks off.
Many thanks and welcome to forum, I feel the same way and hope it works. I hope to bring unique coins/bullion to the UK, that dont seem to be readily available here.
Thanks buddy, glad they arrived safely. And thank you for being my first. :lol: They are great coins, I really like the Zombucks.Lenny7888 said:Just received my order from KLacey from his new site I ordered morgue Anne and also a Pegasus received both today super nice coins great bloke to deal with.
klacey said:Thanks buddy, glad they arrived safely. And thank you for being my first. :lol: They are great coins, I really like the Zombucks.Lenny7888 said:Just received my order from KLacey from his new site I ordered morgue Anne and also a Pegasus received both today super nice coins great bloke to deal with.
Yer got here fast and I really like the morgue Anne but the Pegasus is a really nice one never seen either so really pleased with them thanks again.
Lenny7888 said:klacey said:Thanks buddy, glad they arrived safely. And thank you for being my first. :lol: They are great coins, I really like the Zombucks.Lenny7888 said:Just received my order from KLacey from his new site I ordered morgue Anne and also a Pegasus received both today super nice coins great bloke to deal with.
Yer got here fast and I really like the morgue Anne but the Pegasus is a really nice one never seen either so really pleased with them thanks again.
I have had a lot of interest in the Pegasus, I will have to order more soon I think. Sold a Zombucks Walker today too, cant wait to get the zombuff's in. They are due on the 27th Jan at my source and I expect delivery on 7-10th feb.
If you are interested in others just send me a message, be happy to add to next order buddy.
