Not paying VAT ( UK )

Can anyone tell me how easy it is to register yourself as a business and avoid paying paying VAT on any purchases and save a few pounds or is it more hassle than it is worth.

I would not describe myself as a pro by any stretch of the imagination having only sold a few images on a stock library. My main driving force is to save a few pence. I cannot forsee me earning more than I will spend so from my very limited knowledge of business tax it should be a win win situation.

Any thoughts would be appreciated.

Thanks

THIS LINK may help you.

"You cannot register for VAT if you are not in business or if you sell only goods or services that are exempt from VAT."

Joe public can't do this and you will have to setup a genuine registered business. If it was that easy everyone would be doing it!!

I don't know how it works but when I was on a business trip to england, i purchased lot of things and claimed VAT in the airport. I got all the VAT back within 2 weeks. The only criteria I remember was the item should not be more than 3 months old.

sgogula wrote in post #7068834
I don't know how it works but when I was on a business trip to england, i purchased lot of things and claimed VAT in the airport. I got all the VAT back within 2 weeks. The only criteria I remember was the item should not be more than 3 months old.

That's because you are probably a non EU citizen and fully entitled to claim it back, but you should have declared it in your own country of residence and paid any tax or duty payable.

The OP is a UK citizen (I assume by the London address in his profile)

NinetyEight wrote in post #7068851
That's because you are probably a non EU citizen and fully entitled to claim it back, but you should have declared it in your own country of residence and paid any tax or duty payable.

The OP is a UK citizen (I assume by the London address in his profile)

you are right, i am not a citizen of UK.

Yes I am a Uk citizen. I realise that I would have to set up as a business but I do not know how easy or difficult it is which is what I am trying to find out if anyone could offer any advise.

Thanks

It would be very difficult to register for VAT as the cut off level is currently £67,000.

You would not avoid paying VAT in any case as, unless things have changed from my training, you have to pass certain criteria to be accepted. The main one is that you are providing business goods or services. You would have to be in the situation of having your input tax (VAT on purchases/supplies) amount to less than the output tax (VAT on sales/charges you make) in order to obtain VAT relief. If you dont make any output or make a very low output, then HMRC will not treat you as a business.

If you are caught trying to avoid paying VAT by fraudulently creating a business to do so, then you would probably be liable for fines for tax evasion (which can be VERY heavy).

Just a warning, HMRC treat tax evasion very very seriously.

It sounded to good to be true!!!
Neil thanks for your reply