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

[Spruce Pirate]

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.

 

This is true, but only if your subbies are non-VAT registered. If they start charging you VAT you'll notice a big difference.

 

With reference to the original post, everyone has a UTR. Some companies may ask you for it regardless of your employed / self-employed status. If your S/E you'll be responsible for your own tax unless you're on a CIS scheme, I only know of one Arb outfit who has been on this, but there may be more.

 

Going VAT registered will bump your price up for domestic clients, won't make much difference to VAT registered companies unless they're on the flat rate scheme. If you do go VAT registered I would think about getting on the flat rate scheme yourself, look into it and do some maths, but normally it should work out well for a sole trader.

 

I do find VAT a killer for domestic work.

[nailer]

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.

 

Al, it doesn't make any difference to you, but it would to the main contractor. If the main contractor is on flat rate he can't claim back the vat you're charging him. So a £150 a day subbie becomes a £180 cost to the main contractor if the main contractor is on flat rate.

[skyhuck]

Al, it doesn't make any difference to you, but it would to the main contractor. If the main contractor is on flat rate he can't claim back the vat you're charging him. So a £150 a day subbie becomes a £180 cost to the main contractor if the main contractor is on flat rate.

 

[Sawbee]

This is true, but only if your subbies are non-VAT registered. If they start charging you VAT you'll notice a big difference.

 

With reference to the original post, everyone has a UTR. Some companies may ask you for it regardless of your employed / self-employed status. If your S/E you'll be responsible for your own tax unless you're on a CIS scheme, I only know of one Arb outfit who has been on this, but there may be more.

 

Going VAT registered will bump your price up for domestic clients, won't make much difference to VAT registered companies unless they're on the flat rate scheme. If you do go VAT registered I would think about getting on the flat rate scheme yourself, look into it and do some maths, but normally it should work out well for a sole trader.

 

I do find VAT a killer for domestic work.

 

I have a letter here regarding Construction Industry Scheme, Guess once i give that my tax is sorted for me then