Print Reseller Scheme
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Print & Vat Question

Discussion in 'General Business Forum:' started by fairlands, Jun 6, 2010.

  1. fairlands

    fairlands Junior Member

    With VAT likely to go up to 20% lije a lot of businesses, Im thinking of simplifying my business so that I keep just below the VAT threshold. Im thinking of de registering for VAT

    The one issue I may need to do is avoid buying/selling print through my own invoices to keep my turnover just below £70000 within my business (which is only me anyway so be easy)

    Although Id been VAT registered for about ten years, my turnover has gone down from about £92000 to only about £50000 last year so in terms of turnover I can de register now

    I dont imagine any of my customers will care at all either, and I can increase my fees by 20% as half my customers arent VAT registered too which should still keep me just below the VAT threshold if Im carefull not to do too much work

    I hadnt been doing any print reselling in last year or two at all but next year as Id only been doing websites, but I have some existing customers who proberbly want a small amount of print later this year, maybe £15 to 20K or so of printing, and I can see if I resell print by the time my fees go up by 20% Ild go just over the VAT threshold

    In the past Ive used RCS for print who were great, but of course I have to pay them directly from my account which I want to avoid so I can lower my overall turnover so I can deregister for VAT .

    I wonder if anyone knows of any similar quality and priced companies to RCS who can invoice my customers directly from their company (in advance when I tell them details ) and pay me a decent commision instead of me buying and selling ? Or maybe a print buying co operative or group of some kind who can do this for me ? Or possibly a third party invoicing company of some kind?

    Of course I want to keep completly legal with the tax man but it seems a shame that just for maybe 5k profit on print the total of that extra £15k of turnover would push me just over the VAT threshold, whilst I can see by raising my fees by 20% would be worth £10k extra profit ....plus the joy of never filling in VAT again!!

    Anyone have any sugestions of suitable companies i can use so I only get the profit on print without the turnover ?
     
  2. Levi

    Levi Moderator Staff Member

    um I see it differently but each to their own, I don't see how de-registering will actually simplify things when everything is already set up for a VAT based setup.

    I actually chose to go vat registered due to working mainly with businesses that are vat registered and also due to the fact it saves ME money on business purchases.

    I have to pay the vat that I charge but I can also claim back any vat charged to me from say a printer so in real terms I only pay the difference from my own charges.

    My taxable earnings are based on my income without including vat so it really makes no difference if the vat goes up or not.
     
  3. andycohen

    andycohen Member

    Hi, we should be able to help you out. Send me an email andy(AT)printing4designers.co.uk and we can discuss products, pricing, delivery, service agreements etc.

    Andy.
     

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