HMRC Admin 21 Response

Hi Oldmazda1997,
If resident and domiciled in the UK, you are liable on your worldwide income so any gain would need to be reported here.
Thank you.

Hi Fatiha,
Please see the guidancce below:
Direct attribution of input tax is the identification of VAT incurred on purchases that you use, or intend to use exclusively in making:
Taxable supplies or other supplies that carry the right to deduct
Exempt supplies
This process should be carried out on the basis of the use you make, or intend to make of those purchases. Attribution is undertaken at the time you receive the purchases.
3. How to calculate how much input tax you can recover
Thank you.

Hi Catherine,
Please follow the steps from this link:
Register for VAT
If you have any difficulties please contact our Helpline as below:
VAT: general enquiries.
Thank you.

Hi secondtrader2,
Please see the guidance below:
VAT Margin Schemes
Thank you.

Hi Conor,
If your business belongs overseas and you send goods to the UK to individuals below the value of £135 then the responsibility to account for the VAT would be yours as the supplier.
If this is the case then there would normally be a requirement to register for VAT.
Please see the guidance below:
Changes to VAT treatment of overseas goods sold to customers from 1 January 2021
However the VAT liability of books in the UK is Zero and so you can apply for an exemption from registration.
Please see the guidance below, specifically section 2.4 and section 3.11
2.1 VAT — an introduction
https://www.gov.uk/guidance/zero-rating-books-and-printed-matter-for-vat-notice-70110#overview
If the value of the book is over £135 then it would be the responsibility of the customer to pay the VAT when the goods arrive in the UK and therefore there would be no requirement for you to register for VAT in the UK.
Thank you.

Hi Emma12,
If the goods are sold via an OMP then the OMP will have reposnsibility to account for the VAT if the goods are sold on to individuals under a value of £135.
If the goods are of a value over £135 then the end customer pays the import VAT and so the supply would be Outside The Scope of UK VAT.
Thank you.

Hi BlueFuzz,
It is not possible for a builder to buy over the counter goods at 5% VAT.
The 5% rate will only ever arise where the supplier is supplying and installing goods and so a shop selling materials are obviously not doing that.
When a VAT registered business completes their VAT return they will itemise all of the VAT they have charged and all of the VAT they have incurred. If this results in a repayment to the business then HMRC will pay this to the business within 30 days and generally much sooner than this.
Thank you.

Hi misfitsapparel,
Please can you contact our Helpline so that we can open up your account and confirm the position.
Please see below:
VAT: general enquiries.
Thank you.

Hi Colnmill,
There is a DIY scheme available.
However this is only applicable where either a new house is built or where renovations are carried out on a house which has not been lived in for 10 or more years.
Please see the guidance below:
Claim a VAT refund for a conversion if you're a DIY housebuilder
If you have created a company then the company can register for VAT only if it is making taxable supplies.
If the company becomes VAT registered then it is allowed to recover VAT as input tax in the course of it's business.
Please see the guidance below:
10. Introduction to input tax
3. Working out whether you need to register.
Thank you.

Hi Jawe16,
You do only need to register for VAT if your UK taxable supplies are over £90K in a rolling 12 month period.
Please see the guidance below:
3. Working out whether you need to register.
There are different entities which you could register for VAT.
If you are a single person you would register as a sole trader or if you set up a limited company you can register a limited company for VAT.
You may want to speak to an accountant regarding the benefits of setting up a limited company.
You would only set up a partnership if there is more than one person in business.
Please see the information below:
VATREG08000 - Entity to be registered: contents
Childrens clothes are generally zero rated for VAT purposes when they meet certain criteria.
Please see the guide below:
Young children's clothing and footwear (VAT Notice 714).
If you have a query about income tax please speak with our Self Assessment team as below:
Self Assessment: general enquiries
If you are drop shipping the goods to the UK from overseas then the value of the goods will determine how this is treated.
Can you confirm if the goods are above or below £135 and whether the customers are individuals or businesses.
Thank you.