Help Me Im A Soletrader

i have a tribute band and am trading as a sole trader.There are 3 other members in the band and they are also sole traders so i pay them a fixed fee for every night we play as i own the van and all the equipment and pay the diesel etc.i am not registered for vat as the 1st year was very quiet but this year is very busy.this year the band will have brought in about 112k before i pay the others members.After i pay them im left with 60k minus van insurance,van maintenance,diesel,equipment maintenence and new purchases etc etc.Should i register for vat as when i take everything into account im making 31k profit at the end of the year.Is that below the treshold and do i just pay my normal tax in that 31k.
Any other advice anyone could give me would be much appreciated.

you are well over vat limit. you should use a tr1 to register for income tax and vat. vat on income and recaim vat on purchases. save a bit of money for income tax. might be better off to form a company in 09 under new rules- no harm to get accountant advise.

The requirement to register for VAT is based on turnover, not profit.

Sprite

it is also based on a rolling 12 month peroid and not yearly.

shadowrun said:

but this year is very busy.this year the band will have brought in about 112k

Click to expand...

you should have charged vat on that figure

you now owe revenue approx 19k VAT.