Sole trader risks
Hi,
I am currently registered under an LTD COMPANY that has turned over more than £85000 and therefore I am paying VAT on Amazon fees. This was my mistake as the VAT is eating into my profit .
I was considering changing to a sole trader account which would allow me to not pay VAT, however I am wary as to the risks of liability that could come with this. I only use reputable suppliers but even so I am unsure.
13 replies
Seller_ZJhFeE3tNKzfh
I'd probably speak to an accountant at this point.
Seller_ZVAz3d5lZuGid
I was considering changing to a sole trader account which would allow me to not pay VAT,
If you have turned over £85k either as a ltd or sole trader you must be VAT registered - being a sole trader does not exempt you from paying VAT if you are over the threshold.
Seller_RlZVPg3d6ZUGP
I think you're a bit confused, if you're vat registered you dont pay VAT on fees - there's no VAT number on your account so have you told Amazon you're VAT registered?
Seller_IjUdXgfytlivr
If you turn over more than £85k you get to claim back VAT on your fees and stock etc, but you have to pay VAT on all your sales (for the last year). This is not optional or avoidable (well, if you try to avoid it you can get in even more trouble).
Speak to a good accountant ASAP.
Seller_76AUwmqvSyRIM
Nearly every word in this post is wrong.
You clearly don't understand your legal obligations so as others have said, you really need to use the services of an accountant who should understand VAT and to recommend the most appropriate legal entity for your situation.
I am currently registered under an LTD COMPANY that has turned over more than £85000 and therefore I am paying VAT on Amazon fees. This was my mistake as the VAT is eating into my profit .
I was considering changing to a sole trader account which would allow me to not pay VAT, however I am wary as to the risks of liability that could come with this. I only use reputable suppliers but even so I am unsure.
Seller_EkGoiphKgUnUI
As others have mentioned, you clearly have a very poor grasp of business financial matters. You NEED a proper accountant to give you financial advice, since you have made it this far without figuring out things for yourself.
Seller_kiGi86yCf45Gd
you also can't claim back VAT on Amazon selling fees look at reverse charge or should i say get your accountant to explain it!
p.s you can claim it back on advertising spend from ad campaigns.
Seller_AennIxNXjiBGd
You either are a Ltd company or you are not. It is not for you to swop between the two at will. Either way, you need to be registered for VAT if your turnover tops £85,000. Please speak to someone quick, you could be heading for a whole lot of trouble.
Seller_QKEvdZiFbyopO
You cannot be a VAT free sole trader if your turn over is over 85k
Seller_DfMOm9tgJKAex
i would speak to an accountant
vat on fees is not eating into your profit, because you can claim the vat back - so if you think you are better off not being charged vat, you are mistaken.. same with supplies you buy
