Q
quicksharesw
Guest
hi- not sure what box on vat reg form should tick.Friend is setting up sole trader IT business. The business will fall under: (( (a) website supply, web hosting, distance maintenance of programmes and equipment b) supply of software and updating of it c) supply of images, text and information, and making databases available))-as far as i know this is called Fourth Schedule Services(could be wrong here).
If sole trader have Not opted to register voluntarily i.e. sole trader opted other box (on VAT Registration Form) (i) ''Are you registering because your turnover is likely to exceed the limits prescribed by law for registration'' I assume this is the case where future customers that are indeed vat registered, do require from my friend /sole trader to be vat registered, -surely to do business with.
Or the second scenario , ticking the box (ii) ''because you are in receipt of Fourth Schedule Services''-would ticking this box make more sense?
So, after while (say 2-3years in future) assuming that business will NOT succeed and there will be decrease in the sale-as a result...sole trader decides to De-register for vat as vat registered clients decreased too (as an example).
Ticking one of these two boxes, Would my friend sole trader still incur vat clawback? even if reasonable genuine explanation to revenue will be given?
In other words,ticking what box on the vat registration form,would have what implications? Please advise.PM welcome.
If sole trader have Not opted to register voluntarily i.e. sole trader opted other box (on VAT Registration Form) (i) ''Are you registering because your turnover is likely to exceed the limits prescribed by law for registration'' I assume this is the case where future customers that are indeed vat registered, do require from my friend /sole trader to be vat registered, -surely to do business with.
Or the second scenario , ticking the box (ii) ''because you are in receipt of Fourth Schedule Services''-would ticking this box make more sense?
So, after while (say 2-3years in future) assuming that business will NOT succeed and there will be decrease in the sale-as a result...sole trader decides to De-register for vat as vat registered clients decreased too (as an example).
Ticking one of these two boxes, Would my friend sole trader still incur vat clawback? even if reasonable genuine explanation to revenue will be given?
In other words,ticking what box on the vat registration form,would have what implications? Please advise.PM welcome.
Last edited by a moderator: