Small business, wholesale purchase and vat number?
Ok, I'm in full time permanent employment. I'm toying with the idea of buying goods wholesale and selling for a small profit.
Now I have found suitable products and outlets for sale but the problem arises in purchasing. All the wholesales I've looked at require vat numbers in the registration process.
So, getting a vat number. Is there a way around this, if I apply via hmrc what consequences will there be in respect to my employment etc etc.
Business accounts, is it possible to use my current bank account?
This is going to be minimal stock, profit, turnover just testing the water.
Any answers to any of the questions is greatly appreciated.
- Anonymous7 years ago
You do not need to register for VAT until your turnover is £79000 per year. The wholesalers must have customers who are not registered for VAT so enter n/a or something or ask the supplier what to put. The disadvantage of registering if you do not have to is that if you register for VAT then you have to charge your customers VAT which may make your prices non competitive. On the other hand you will be able to claim back the VAT you pay in return for a bit of extra paperwork.
It is always bets to keep business accounts separate from private.
- Anonymous7 years ago
They're asking for a VAT number because they don't want to deal with small traders - and anyone with a turnover of under £79,000 is very small, in the eyes of a wholesaler.
Nothing to stop you registering voluntarily for VAT.
UTR won't be accepted. Anyone who is subject to self-assessment gets a UTR (you don't need to be self-employed), and wholesalers know that.
- ?Lv 77 years ago
You don't need a VAT number to run a small business
You need a Business bank account
My husband runs a small business , uses wholesalers all the time as has no problems
and he is not VAT registered.
He is a sole traderSource(s): uk
- TavyLv 77 years ago
Wholesalers require proof that you are in business ( not all businesses are VAT registered) If you are not Vat registered then they want your UTR number which HMRC give you when you register as self employed.
This is to stop people like you taking away business from retailers. They also only sell in bulk. For new businesses they require payment up front.
UKSource(s): Rtd Business Owner