Hiya, I hope everyone is doing well. I have a business idea and would like some advice, about what kind of tax I have to pay.
I have a business debit card that gives me 1.2% Cashback on spending. It is only usable by a self employed person or a freelancer. I also received a quote for a card machine for 0.4% fee for transactions. So the general idea is, spend money on my own card machine and pay 0.4% and receive 1.2% cash back. Reinvest the profits and repeat month after month. After calculations, I would hit the VAT-Threshold quickly. Is that applicable? Does it make my business idea void?
What if I would register a LTD company. I would pay £100 including VAT from the self employed business to the LTD company. Recieving cash back and pay the 0.4% fee for transactions.
I could even reason the transfers. Self employed me would pay £100 including VAT to the LTD company and pay for a product. Afterwards the self employed me invoices the LTD company for 100£ including VAT.
Let me know, I am curios in how this would play out. What am I forgetting?
All the best, Julian
