Potential new client, hot take away food. Been operating a few years. Not registered for VAT.
I don't want to be over-thinking this but I have concerns around VAT.
A lot of sales come via an online advertiser. Customer contacts the advertiser, orders the food, pays the advertiser (say £20), collects the food from the take away. The advertiser pays the take away (say £17). I have seen the account opening document signed by the take away, but it is not clear to me whether the advertiser is acting as an 'agent' of the take away when receiving the £20.
Q1. For VAT threshold calculation, is the turnover £20 or £17?
Q2. Assuming VAT registration is required, is the likelihood that ALL sales will be standard rated?
Q3. Costs are chiefly wages & food. The business owner owns the property (so no rent). I believe the flat rate would be 12.5% of (VAT inclusive) taxable turnover. Is that likely to be a good deal for the client?
Thanks in advance for any responses!