Can anyone please confirm or otherwise my understanding of turnover? I've always taken it to mean income, i.e. buy 10k of widgits, sell for 15k - profit 5k, turnover 15k; repeat process in same year - profit 10k, turnover 30k. So in the world of contracting, if you're invoicing less that 64k a year you shouldn't need to register for VAT (flat rate advantages aside) no matter what your spending is?
If so, can anyone make any sense of the following from HMRC : "If you receive certain services from abroad, for example advertising, data processing, consultancy or legal, accounting or professional services, these will be treated as if you supplied them and you must include the value in your taxable turnover"?
This seems to imply that if I subcontract some work abroad I should be adding some spending to my income in order to calculate turnover, i.e. invoice 60k, spend 10k on data processing in India - turnover 70k. This can't be right surely?
Thanks all, T.