Do I need to register for VAT?

[bazza1603]

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Hi,

I work full time for my sins and earn X amount

I do affiliate as a hobby and turnover is Y amount.

If X and Y are over the limit (Approx £53k) do I need to get registered for VAT. Or Does VAT registation just work on Y amount?

Best Regards

Baz

[Reddy]

AFAIK it's based on your business's turnover, your salary doesn't matter.

It may be worthwhile registering though, even if your turnover isn't yet over the threshold.

David

[Frostie]

Bazza

Same situation here - bascially its based on your businesses turnover. If you are fulltime employee then you are ok, but if you are a self-employed contractor working for an employer then its different. I am no expert but this link will help you;
http://www.businesslink.gov.uk/bdotg...mId=1075354342

Basically it says;

From 1 April 2005, the annual taxable turnover limit for VAT registration will be £60,000. You will have to apply for VAT registration if:

at the end of any month, you have supplied goods and services worth £60,000 or more over the past 12 months
at any time you think that you will supply goods and services worth £60,000 or more in the next 30 days

Hope this helps

[T.J.]

Hi,

I work full time for my sins and earn X amount

I do affiliate as a hobby and turnover is Y amount.

If X and Y are over the limit (Approx £53k) do I need to get registered for VAT. Or Does VAT registation just work on Y amount?

Best Regards

Baz

I was in a similar situation until recently,
Working full time, running a seperate business in spare time and also doing
affiliate work in spare time.
My accountant recommended putting everything through the same business,
it means I now have to charge VAT for everything I do now, but rather than
being payed a wage for anything, I now charge a fee via my business.
The big advantages are not having to pay 40% tax on any earnings and being able to claim VAT back on any expenses.
There are dissadvantages too, if you still intend working you will have to go
off the books (losing all your employment rights)
You really need to see an accountant and let him know the things you are
doing.

[drivetowin]

I'd be very careful with what you are doing - if you are doing exactly the same job now as you were before but now you are invoicing the company the Inland Revenue are going to come down on you and your 'employer' like a ton of bricks - they will consider that the employer is evading Employers NIC contributions and that you are evading your tax liability.

There are all sorts of rules to determine if you are self employed in what you do for your 'employer' but essentials are:

Do you use your own equipment or theirs? - should be yours if you are self employed.

Can you set your own hours of work? - if you cant the IR will say you are employed.

Are you free to work for someone else at the same time? - again if you cant IR will say you are employed.

Are you under the 'control' of someone where you work? - if you are, again balance is likely to be that you are employed.

And if you are a limited company and the above apply you almost certainly fall under the IR35 legislation.

Also not quite sure what you mean when you say you're not having to pay 40% tax on your income - at point of payment that is true but bear in mind that you will now have to complete a self assessment tax return every year (or your accountant will) at which point the tax on your income will be assessed and your total tax bill may be much nearer to your old 40% than you currently appear to be expecting (though that does depend how good / creative your accountant is )

[T.J.]

Like I said, the OP really needs to see an accountantant.
In my case I am OK, I still do work for my old employer occasionaly but no
more than 20 hours a month and on a consultancy basis.
Every penny I earn now is payed straight to my ltd. company and I draw a
wage from there.
I have a very cheap lifestyle, so pay myself a very small wage at the
moment, my wife (as company secretary) draws about £90 a week from the
company, which keeps our tax bill very low.
All the money I am making at the moment just goes back in to the company,
again, a good accountant will advise on the best way of handling this,
probably have a nice little dividend each at the end of the year

[cat]

I'm sorry I have to ask this question. (here comes a really daft question)

I just don't understand how VAT works when applied to AM.

When I receive a a check from Google, TD CJ etc
Are those sales? and where is the VAT?

You can tell I need a trip to an accountant, any recommendations in NW England?

[Wardy]

I'm sorry I have to ask this question. (here comes a really daft question)

I just don't understand how VAT works when applied to AM.

When I receive a a check from Google, TD CJ etc
Are those sales? and where is the VAT?

You can tell I need a trip to an accountant, any recommendations in NW England?

The VAT will be added on once you become VAT registered, then you pay that VAT back every quarter.
You won't receive VAT on google adsence cheques or from CJ as they aren't from the UK.

There will be plenty of accountants, I bet if you had a look you could get some free advice of lots of them.

Cheers
Wardy

[drivetowin]

The best way to find an accountant I have found is through personal recommendation - ask around any of your friends who are self employed (or your local pub landlord assuming he his not just a manager) who they use.

[cat]

Many thanks Wardy - seems clearer now - I hope.
So TD pays me 17% extra, I don't spend this money of course, and sent it to the taxman?

Are Zanox and Befree VATless?

[Frostie]

The best way to find an accountant I have found is through personal recommendation - ask around any of your friends who are self employed (or your local pub landlord assuming he his not just a manager) who they use.

Couldn't agree more. I have only just got my head around the holes in the wall and nin pumbers Agree with what Keith says - get yourself an accountant and let him do it for you.

It helps if you can keep your books in some kind of order, as it means less work for your acc and so charges are likely to be less.

CAT - I seem to recall Zanox have an option where you can complete your VAT details - take a look under your payment settings. BeFree - no idea.

[bazza1603]

Hi,

I didnot make it very clear above.

For my job, I pay tax at 26 percent and pay NI, Pension etc. I am employed. On my tax return I declare both.

I started my websites as a hobby, but its making more money all the time therefore I was getting worried about the both X and Y coming to over £60k over the year.

Thanks

Barry

[Panfried]

I think the answer is no, just when the self employed portion get's near the limit.

A question of my own as i'm in the same boat,

You must register your business for VAT if you supplied taxable goods and services amounting to more than £60,000 in the last 12 month period, or if you anticipate supplying taxable goods and services amounting to more than £60,000 in the next 30-day period alone.

Commision payments from adsense are not included in this calculation correct as they are not taxable good/services.