Be Excellent To Each Other

I've heard many horror stories about going VAT registered and my business is getting close to it. I'm just wondering how on earth it will work when I get most of my stock from car boot sales.

How do I prove how much I've paid for it? Will this mean I have to keep a record of every single item I buy in to my stall and how much it sells for?

Anyone know?

I think there's a 'simplified' VAT scheme where you just basically give them a bunch of cash, not too many questions asked.

I would imagine the most accurate way of paying over the least amount of VAT would be to go on the margin scheme

http://www.hmrc.gov.uk/vat/start/schemes/margin.htm

You would need to get receipts though - I can imagine it being a complete pain in the arse.

There's a flat rate scheme whereby you just pay over a percentage of your takings to HMRC (looks like 7.5% according to the [url="http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm]tables[/url]) but you can't claim the VAT back on any purchases (capital items over £2k are allowed I think). That may be a lot easier but you'd have to work out if it's more or less financially painful for you.

You need a spreadsheet. Spreadsheets are awesome.

Sounds like a good thing. Can't find many details about it though. Seems to be a simplified VAT invoice though.

That could be useful. Will inspect. Receipts for purchases at the car boot would be impossible.

That flat rate VAT does look very useful. Thank you!

I'm just wondering, do I include the postage credit from Amazon as part of my VAT calculations? Might give me a bit more room if not.