freenlancing and VAT
- Started
- Last post
- 10 Responses
- imakedesign
Hi,
i have my 1st freenlance job.. just wondering what to do about the vat do i charge it? also does anyone know of any good places that tell you current per hour rates..
- rasko40
you wont be charging VAT because you are not VAT registered.
- imakedesign0
ok thanks.. what do i have do to be able to buy things like a laptop without paying vat?
- UndoUndo0
you cant,
you claim VAT spent against VAT taken (which you dont do bcos yr not VAT registered)
so you have to pay the VAT untill you become VAT registered.
- Concrete0
so you have to pay the VAT untill you become VAT registered.
UndoUndo
(Jun 21 06, 07:51)I don'yt think thats right. If you're in the UK you will need to send of your Tax return for this financial year bfore September.
In this return you can claim expenses for purchases related to your business. These will be dedusted from the total amout of Tax the IR request that you pay.
- rasko40
thats nothing to do with VAT. You still pay VAT, you cannot claim that back unless you are VAT reg'd.
Claiming expenses is standard tax deduction.
- republik80
You can only charge and claim back VAT on purchases if you are registered for VAT.
It's simple enough to register for VAT, but bear in mind it will add a further 17.5% to your prices which may not be attractive to some of your customers who cannot claim it back.
HM Customs & Excise who adminster VAT in the UK recommend business turning over £54,000 a year (approx) register for VAT, though businesses under the threshold are welcome to register.
Good advice here:
http://www.businesslink.gov.uk/b…
- mothy0
You know the guy in the pub who takes cash on the TV ad?
That's me.
My advice would be to bomb the Home office, because they wont help you at all.
- Concrete0
My advice would be to bomb the Home office, because they wont help you at all.
mothy
(Jun 21 06, 08:40)Say it how you mean it, mothy.
- moth0
?
- UndoUndo0
what I said is right, what concrete said is offsetting your expenses against yr earnings so you only pay income tax on yr profit.
with me?
:)