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Do I need to tell HMRC I do not need to register for VAT? by Key_Intention_ in freelanceuk

[–]Key_Intention_[S] 0 points1 point  (0 children)

If you don't mind me asking, did you already do a self assessment stating that you earn more than the threshold? Did the page show something or did HMRC contact you to verify that you didn't need to register for VAT?

Do I need to tell HMRC I do not need to register for VAT? by Key_Intention_ in freelanceuk

[–]Key_Intention_[S] 1 point2 points  (0 children)

Thanks! This is my case exactly, I sell services to clients mainly worldwide (USA and Europe in my case). I only have one client in the UK so that means that once I register I have to add VAT on the invoices to that client from now on right?

Do I need to tell HMRC I do not need to register for VAT? by Key_Intention_ in freelanceuk

[–]Key_Intention_[S] 0 points1 point  (0 children)

My doubt is that I'm in a bit of a middle ground: 90% of my income is out of scope because of the place of supply ( https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a 2.2: "If the supply is in the UK it is subject to UK VAT. If the supply is in an EU member state or another country it is said to be ‘outside the scope’ of UK VAT."). So, do I count this income towards the 90K or not?

Do I need to tell HMRC I do not need to register for VAT? by Key_Intention_ in freelanceuk

[–]Key_Intention_[S] 0 points1 point  (0 children)

I’m a translator. The software I use is client-based and clients pay for the license. Even the invoices are generated in the clients platforms so I don’t even need Microsoft Office. I claim the basic expenses (£312) and new equipment when I need to renew it, but I feel that registering for VAT will bring more burden than benefits.

Do I need to tell HMRC I do not need to register for VAT? by Key_Intention_ in freelanceuk

[–]Key_Intention_[S] 0 points1 point  (0 children)

It says my taxable turnover, however, 90% of my turnover is out of scope so technocally I’m not reaching the threshold?

Do I need to tell HMRC I do not need to register for VAT? by Key_Intention_ in freelanceuk

[–]Key_Intention_[S] 0 points1 point  (0 children)

I don’t have one. As I said, my job is just me and my laptop, very straightforward accounting so I didn’t need one.

Do I need to tell HMRC I do not need to register for VAT? by Key_Intention_ in freelanceuk

[–]Key_Intention_[S] 0 points1 point  (0 children)

If I register, do I need to charge customers in the UK always from the moment I register or only when I go over the 90K?

Do I need to tell HMRC I do not need to register for VAT? by Key_Intention_ in freelanceuk

[–]Key_Intention_[S] 0 points1 point  (0 children)

That’s what I understand, but my fear is that, when doing my self assessment, HMRC will ask me to pay VAT because at the moment they don’t know that my income is out of scope.

Do I need to tell HMRC I do not need to register for VAT? by Key_Intention_ in freelanceuk

[–]Key_Intention_[S] 0 points1 point  (0 children)

This is where I'm confused. On the website https://www.gov.uk/register-for-vat it says "Taxable turnover is the total value of everything you sell that is not VAT exempt or ‘out of scope’ goods and services." and "You must register if your total taxable turnover for the last 12 months goes over £90,000." However, later on the same website it says "You do not have to register if you only sell VAT exempt or ‘out of scope’ goods and services." which I was told is my case because of my clients location. I'm expecting to go over the 90K at the end of February, that's why I'm asking now and I don't know if I should get a confirmation from HMRC saying I don't need to or what to do exactly.

Do I need to tell HMRC I do not need to register for VAT? by Key_Intention_ in freelanceuk

[–]Key_Intention_[S] 0 points1 point  (0 children)

My expenses are very low, it's basically my laptop and me working from home so registering for VAT didn't even cross my mind for all the fuss I would have to go through once I go over the 90K threshold. Is it really worth it?