Hi there, i'm still making my hand made jewellery site. I'm so confused about the vat. Should i include it in my prices or add it at the checkout. Also when keeping my accounts on my spreadsheet, i take into account the cost of making the item, what it sold for, if i put in the vat amount would this be included in my profit or would it be listed on it's own. Iv'e probably made this sound really complicated, but hopefully someone can help me.
Taxes are one of the reason's it's taken me so long to pluck up the courage to start my own site. :(
Also, is it best to self assess or let an accountant do the job. Some people tell me it's easy to self assess, but i would like people's opinions on this .
Thanks for your time,
Hi, first of all, if you expect your annual income from sales to be less than £79,000, you don't need to register for or charge VAT at all, and the problem goes away - see http://www.hmrc.gov.uk/vat/start/register/when-to-register.htm.
If you do expect to go over £79,000 pa in sales in the near future, then I'd suggest you get an accountant involve - you'll have to register for VAT, file quarterly returns, pay over to HMRC the VAT element charged on all sales less the VAT paid on purchases of materials, etc. And you need to keep careful records in case the VAT-man comes to inspect. So worth getting advice.