Q: We have just set up a new company. We have ticket sales (for an event) of 15,000GBP (gross). How much VAT will be payable to HMRC at 15% VAT?
A: Hi
I’m assuming that the company is registered for VAT and that the event is a taxable event. There are some exemptions for certain charitable, sporting or publicly funded events and there is information on the HMRC website about this if you think it might apply.
But assuming it’s a normal commercial operation and doesn’t qualify for exemption, you calculate the VAT on the ticket sales by multiplying £15,000 by 3/23, which comes to £1,956.52.
If the company isn’t yet registered and this is it’s only income, you wouldn’t have to register for VAT as the turnover is under the registration limit which is currently £67k. However it might be worth registering on a voluntary basis if the company will be incurring VAT on costs (input tax) that it wants to recover.
If you need more information on VAT registration, have a look at VAT leaflet 701/1 “Should I be registered for VAT” which is on the HMRC website.
Hope this helps
Kind regards
Marie