Adwords and VAT - confused!

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Hello - first post here, though I've been lurking for a while

I have a question regarding Adwords and VAT. I am relatively new to affiliate marketing (been playing around for a year or so, and had the occasional sale, but am just starting to take it seriously). I'm already registered as self-employed (sole trader), as I've done eBay & freelance work for the last few years.

I have never used Adwords or PPC before, and am just about to open an Adwords account. However, I'm confused about the VAT aspect. According to Google's help section, I need to register as a business user, since I'll be using Adwords for making money. It also says that:

"If your business address is within the EU but outside Ireland and you advertise with AdWords for business purposes, you qualify to self-assess your VAT charges.

To self-assess your VAT charges, you may register for a VAT number and pay VAT at your own member state rate. Then, you can enter your VAT information in your Billing Preferences page (under your My Account tab) at any time."

Now I'm not VAT registered, as my turnover is nowhere near the £67,000 limit. I understand that Adsense expenditure counts towards the limit, but I think that for the next year or two at least, I still won't get near it, so I don't really want to register for VAT.

So what I'm not clear on is -

Do I have to be VAT registered to open an Adsense account as a business user?

How do I 'self-assess' my VAT charges? Is there extra stuff to fill in on my tax return?

thanks in advance

[hrbs]

I have never used Adwords or PPC before, and am just about to open an Adwords account. However, I'm confused about the VAT aspect. According to Google's help section, I need to register as a business user, since I'll be using Adwords for making money.

Now I'm not VAT registered, as my turnover is nowhere near the £67,000 limit. I understand that Adsense expenditure counts towards the limit, but I think that for the next year or two at least, I still won't get near it, so I don't really want to register for VAT.

So what I'm not clear on is -

Do I have to be VAT registered to open an Adsense account as a business user?

Hi

These questions are answered at Affiliate Marketing : Business and accounting tips from HRBS Accountants

In particular:
Google Adwords - to register you do not need to be VAT registered, just using the account for business purposes - follow the account setup instructions at
How to reclaim VAT on Google Adwords : Business and accounting tips from HRBS Accountants

VAT threshold:
This is the total of your VATable turnover + Adwords spend over a rolling 12 month period, see
VAT for affiliate marketeers : Business and accounting tips from HRBS Accountants
If the historic total is below the threshold then you do not need to register for VAT.

You will need to monitor your cumulative figures monthly to check whether you meet the threshold. The threshold usually increases each April.

With regards to general running of the business, you may find this aticle on tax deductible expenses useful:

http://tips.hrbs.biz/running-your-bu...ible-expenses/

Hope this helps

Regards

Keith
http://HRBS.biz

[catbot]

Thanks very much for the info Keith! (and I might be in touch with your firm when I'm making enough to need an accountant )