Paying vat on trade in

[James lav]

Hi, we are looking to trade a tractor into a local dealer, we arnt vat registered so when we purchased the original tractor we payed the vat and couldn’t claim it back. Now to change to the new tractor can we just pay the vat on the difference of the prices of the two machines or do we have to pay the vat on the full amount of the new machine?

 

[Nearly]

Full vat on fresh one.

 

[tweedale terrier]

Might be worth trying to sell your trade in privately. Lots of people not VAT registered looking to buy a tractor. Hopefully you will get a bit more for it, helping ease the pain of the VAT on the new one

 

[farmerm]

Is it not worth getting Vat registered?

 

[daveydiesel1]

Is it not worth getting Vat registered?

Even get vat registered buy the tractor claim the vat and then do unregister yourself if thats what suits your business. But defo get the old 1 advertised with no vat. Youl get betr money for it

 

[TomD]

Even get vat registered buy the tractor claim the vat and then do unregister yourself if thats what suits your business. But defo get the old 1 advertised with no vat. Youl get betr money for it

Probaly a loop hole the vat man has covered else everyone would do that....

 

[Crowfarmer]

Even get vat registered buy the tractor claim the vat and then do unregister yourself if thats what suits your business. But defo get the old 1 advertised with no vat. Youl get betr money for it

You will still have to pay the vat on deregistering.

 

[Dry Rot]

You will still have to pay the vat on deregistering.

...but I think the VAT man writes it off after a certain number of years. Five I think. It pays most farmers to be VAT registered.

 

[Clive]

Unless it’s a very small tractor how can a business buying a new tractor keep itself under the vat registration threshold ?

 

[Clive]

Is it not worth getting Vat registered?

you can go back 3 years I think as well with your first claim

it’s very rare a its not a good idea for a farm to be vat registered, we buy most things plus vat and sell mostly vat free goods !

 

[Haytime]

you can go back 3 years I think as well with your first claim

it’s very rare a its not a good idea for a farm to be vat registered, we buy most things plus vat and sell mostly vat free goods !

Can go back 4 years for purchases, and 6 months for services

 

[Chris F]

...but I think the VAT man writes it off after a certain number of years. Five I think. It pays most farmers to be VAT registered.

Was going to say the same. Register for VAT if you are a farm. If you were a one-man contractor though I see why you might want to not be vat registered to keep your prices low to the general public.

What's the VAT threshold now - has been a few years since I had to do that bit. Is it around £80k turnover a year?

 

[Haytime]

Was going to say the same. Register for VAT if you are a farm. If you were a one-man contractor though I see why you might want to not be vat registered to keep your prices low to the general public.

What's the VAT threshold now - has been a few years since I had to do that bit. Is it around £80k turnover a year?

£85K turnover