Hi all,
I've noticed that at my current daily rate I'll need be over VAT threshold by the end of this tax year. I've been reading up on the VAT stuff but still not entirely sure about it.
So looks like I'll need to register around October. Does it mean that I will have to pay 20% extra tax over my entire turnover for the year? I haven't charge a single penny for VAT so it sounds really unreasonable. Not sure if that's how it works.
Do you think I would be better off if I volunteered for VAT so that at least I could start charging VAT?
I can understand it for my 2nd year in VAT as I would have charged 20% extra the whole year and I can simply give it to HMRC. I wouldn't mind that. But if that applies to the first year too that sounds like a massive amount of tax.
Please let me know what you think and feel free to tell me I'm completely wrong!
Thanks.
I've noticed that at my current daily rate I'll need be over VAT threshold by the end of this tax year. I've been reading up on the VAT stuff but still not entirely sure about it.
So looks like I'll need to register around October. Does it mean that I will have to pay 20% extra tax over my entire turnover for the year? I haven't charge a single penny for VAT so it sounds really unreasonable. Not sure if that's how it works.
Do you think I would be better off if I volunteered for VAT so that at least I could start charging VAT?
I can understand it for my 2nd year in VAT as I would have charged 20% extra the whole year and I can simply give it to HMRC. I wouldn't mind that. But if that applies to the first year too that sounds like a massive amount of tax.
Please let me know what you think and feel free to tell me I'm completely wrong!
Thanks.
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