starting out - Help claiming expenses inc vat

Small sole trader set up, help with claiming expenses

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Just after some advice as confused a little

Not vat registered

Small sole trader set up, mainly labour costs passed on but occaionally will need to buy the odd chimney pot etc, i will be claiming the cost of the pot as a expense and then charging for it on the invoice. My question is when i claim the item as a expense so i claim the full price including vat, or the price pre vat 

eg. £50 inc vat, pre vat £41.67 

As i cannot onward charge vat, so do i have to take the kit on the 20% purchase vat and just claim the main cost £41.67 expense back or i am going into deep here. 

Can i just claim the item as a expense fully and then charge onward without vat. 


Replies (3)

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By Les Howard
04th Apr 2024 16:54

An initial meeting with an Accountant will resolve this, and other questions you will have. (Yes, it is worthwhile!)
Since you have asked about VAT, you should discuss whether you are likely to be required to register for VAT, as different answers will then apply.

Thanks (2)
Scalloway Castle
By scalloway
04th Apr 2024 16:56

If you are not VAT registered then any VAT you are charged is part of your costs. You recharge the VAT inclusive cost. Do not mention VAT on your invoice.

Thanks (2)
By Paul Crowley
04th Apr 2024 17:26

Best talk to an accountant nice and early, about lots of things.
You charge what you think is fair for pots. You needed to find and get it. So charging £75 is not unreasonable.
If client wants a cheap pot, let him find it and collect it. Then if it breaks, his problem to replace it.

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