UK VAT and stuff
Out of context: Reply #9
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- trevedda0
You only have to be VAT registered if you TURNOVER in excess of £56K. You can elect to be VAT registered if you turnover less than that - in which case you then need to make quarterly VAT returns but you can then claim the VAT back from anything you purchase for your work.
If you are not VAT registered you do not need to charge VAT (17.5%).
Yes, design, internet, consultancy are all VATable services if you are VAT registered.
If the job is a one off and paying you less than £56 you don't need to get involved in VAT.
You will need to declare your income to the inland revenue, which is not do with VAT. You will then be required to pay income tax on the revenue you have earned.
If you already pay income tax via PAYE (you are employed and they pay you a salary of over £4k) you can call the IR and tell them you have earned "x" and they will adjust your tax code on your PAYE.
Legally, you can't earn any money without declaring it and paying tax on it. If you invoice you can be audited and traced via your client's accounts. If they pay you in cash it may be a harder to be traced but not impossible.
As a sole trader (ie someone not earning PAYE) you will need to complete a tax return which is not difficult but you may want to get an accountant to assist you.
At the end of the day you may risk not paying tax and get away with it. But it's against the law and morally, if you are resident in a country then you should contribute to it's welfare.
Hope that helps.