VAT? UTR? Freelance ? any relative Q&A's on self employement basis

[Sawbee]

Hi Guys, been looking through some of the topics on self employed, freelance climbers etc

 

Can you tell me whats the best path for me to take..

 

the last 2 years I've been self employed not as a climber or tree related.. and fuel cost, equipment etc have never been a concern and i was also being payed via a 3rd party scheme so at the end of the year all i needed to quote was my earnings and never bothered to claim or put down any of my expenses which were shopping etc not really work related.

 

now we've run into the new tax year I have been offered a self employed position with regular work and also having my PTS ticket so there's the chance to offer the odd weekend to other companies and along with the odd domestic job under my own name.

 

do i register for vat so i can claim on fuel and equipment or don't bother and just put it down as an expense at the end?

 

Also

 

UTR number... i do have one, will i benefit from giving that to this new employer as such as i will be taxed on earnings before its payed to me ?

[Steve Bullman]

If the company you are working for mostly is vat registered then definetly go vat registered, thats a no brainer

[Sawbee]

I will have to ask, if not would it be better off not registering ?

[Steve Bullman]

Depends really. If you register that means you'll be charging them an extra 20% on top of what you've already agreed. If they're vat registered that wont affect them as they will claim it back. If they're not then it could sway weather they choose to use you or not.

[Sawbee]

am i right in saying so something like vat registered may affect receiving work later on with other companies?

 

I guess all stuff like this isn't such a ball ache once you've got it sorted and stay on top of everything

[Steve Bullman]

non vat registered companies, yes it could make a difference

[Sawbee]

Is there legally any ways around it if i was registered and they weren't other than charge less?

[nailer]

No way round it. Make sure the companies using you are not on the vat flat rate scheme. If they are you will cost them more, in the same way as if they weren't vat registered. If they are vat reg, and not on the flat rate scheme, you should go on it.

[Yorkshireman]

If the company you are working for mostly is vat registered then definetly go vat registered, thats a no brainer

[Al Cormack]

No way round it. Make sure the companies using you are not on the vat flat rate scheme. If they are you will cost them more, in the same way as if they weren't vat registered. If they are vat reg, and not on the flat rate scheme, you should go on it.

 

Doesn't make any difference if they are on the flat rate scheme. You still charge and claim vat, but rather than working it all out you just pay a flat rate.

I've been on the scheme for a couple of years now and pay less vat than if I was on a normal scheme.