clothing bussiness confused with VAT

[gg1234]

Hi Guys ,

Has anyone of you ever started a clothing business . I have issues with VAT.I am just confused with it .Any anyone help or any suggestions ?

Regards,
gg

[splendidpup]

I'm an accountant. What are you confused about exactly?

VAT - you are either registered for VAT or not. If not, ignore it.

If you are, then you charge VAT to your customers, collect it, and pass it on to the HMRC. In return you then also get a refund of the VAT you've paid out on items and services for your business. So it reduces your costs, but increases the prices your customers have to pay.

Registration is voluntary if your business's taxable turnover (income) is under £79,000 per year.

[gg1234]

Hi thanks for the reply I have started a small clothing firm recently and it's the first time I am self employed so I was confused with vat and other stuff .to be honest u don't need vat right now since my bussiness is very new but I didn't want to break any rules and be not informed about stuff do I asked .thanks for me vat is far far away :))

[gg1234]

Sorry for the rubbish English I am typing by phone

[kentishgirl]

OK, so just ignore it. You can't charge it to your customers, and you can't claim it back.