Earned a project to build a website from an US company

[LisaContractorUmbrella]

Can someone say, Do I have to charge VAT for a client based in US? My company is VAT registered in UK.

If you are billing the US company directly you won't need to charge VAT

[tyut4669]

Do I have to charge VAT for a client based in US

Can someone say, Do I have to charge VAT for a client based in US? My company is VAT registered in UK.

[tyut4669]

you're going into the 40% bracket at £6p/h?
>> Yes. Because I do other works as well. I do some work cheaply because I would like bigger client base as well.

VAT....hmm...it could well be that there's no need to charge it. I'm guess no.
>> I am assuming since my company is VAT registered, I must charge VAT. Is there any option for not being?

If you do, would you really want to pay corporation tax on the VAT you charged?
>> You are right here. I got sums little wrong.

[Olly]

What's "top end dividand tax (22.5%)" ... you're going into the 40% bracket at £6p/h? Why not leave the money in your Ltd?

VAT....hmm...it could well be that there's no need to charge it. I'm guess no. If you do, would you really want to pay corporation tax on the VAT you charged?

[tyut4669]

I am a IT freelancer, I got a project to build a website rom an US company. It is really on tight budgets. I won't be getting more than 6 pounds per hour. or something like this. That is all including VAT if any I have to charge him.

By running this project through my limited company, I seem to get only 37.5%! of this money into my personal account after paying corporation tax (21%), top end dividand tax (22.5%), VAT (20%).

Since I am opering for a client in US, is there anything I can do different to save tax legitimately? btw, I run flatrate VAT scheme?