Barts
hi, 

I'm new to VAT, and my company is likely to hit the threshold very soon.  So I’m trying to plan ahead & wondered if I need to show a breakdown of VAT on my estimates or if I can just show a total cost figure (including the VAT).  I’m concerned that if I highlight a VAT cost on my estimates, it may put people off and lead to them searching for un-registered companies who will be 20% cheaper.  Any advice welcome
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vatconsultant
No you can not charge VAT unless you are VAT registered. 

For further details on VAT registration see here: https://www.vatforum.co.uk/post/under-threshold-charge-vat-10201925?pid=1309132025&highlight=threshold
 
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Barts
Thanks for the response.

im not saying I’m going to charge VAT yet, I just wondered if I had to show it on my estimates once I am registered and charging VAT, or if I could just show it as total cost inclusive of VAT, without a breakdown.
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VAT-adviser
Ok I understand your question but you should use actual figures (and hardly estimates). You look at your past turnover during a rolling 12 month period OR turnover for the 30 days alone if it reaches the VAT threshold.

The turnover is VAT exclusive (not including VAT) in your numbers.

Exempt supplies are excluded from your turnover for VAT registration purposes. But beware if you use the Flat Rate Scheme, because such income is included as 'business income.'

Regards
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Barts
Thanks for your response.

when I say estimates, I mean for prospective jobs (quotes/tenders) not an estimate of my potential turnover in the future 🤣

so when i provide a customer with an estimate/quote/tender, do I need to legally show a VAT breakdown on it? Or can I simply show a total figure (inclusive of VAT)

eg

labour £120
total £120

or

labour £100
vat £20
total £120

i think people may look elsewhere if they think they are paying VAT and not getting anything for it
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