make it official?

[piksie]

i have started personal shopping and its turning into a tiny business(just me) as i am making a profit do i have to become vat registered , when and how do i do this?
as a business novice, what else do i need to know about?

[thickchick]

Hi there

If your business' turnover is more than £60,000 a year, you will have to register with HM Revenue and Customs (HMRC) as a Value Added Tax (VAT) vendor and charge VAT on all goods and services that you provide. This involves some administrative effort on your part but also lets you claim back the VAT that you pay to suppliers.

You can register voluntarily for VAT even if your taxable supplies do not exceed £60,000, as long as you make taxable supplies. You will have to charge VAT on your sales, but will be able to reclaim VAT on your purchases. In general, if your customers are VAT-registered businesses, it will be worthwhile for you to register as well - inyour case this unlikely.

You should seek professional advice:
HM Revenue and Customs
VAT National Advice Service
Tel: 0845 010 9000
www.hmrc.gov.uk

I take it you have already registered with the Inland Revenue as Self-employed.

Insurance is something you should also think about - probably professional indemnity insurance as you are ultimately offering consultancy.

Take a look at the Be Your Own Boss section of the website - particularly Finance & Funding for info on VAT & Tax; and Insurance info can be found in the General Management section.


Good luck