I have started a new company and want to know the following:
My company won't be doing invoices or quotes nor will it be buying anything on credit. So no VAT will ever be charged from my side. In the future I see the company recruiting employees but for now it is just me. Do I need to register my company right now (if its just me) as I would like the perks of having the office space I am using to be taxable. I am using 2 parts of my house for work purposes (one for offices and the other for storage). Secondly, my company will be doing collections and deliveries which is petrol. When can you claim that? Is it true you company has to be profiting over a certain amount of money in order to claim?
If you are actively trading in order to earn a profit you can claim any expense that is related to earning this income. This is for income tax purposes, not for Value Added Tax, you cannot claim VAT on expenses incurred unless you are registered as a Vendor and making taxable supplies. You do not need to register a company based on your circumstances and can trade as sole proprietor.
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