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A Question for all the Offline marketers in the UK

Discussion in 'Offline Marketing' started by Theodore, Dec 13, 2010.

  1. Theodore

    Theodore Power Member

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    I've just got a couple sites for a few offline businesses and im currently in the procces of working out how much to charge them. I was just wondering, considering i'll just mentioning them on my sites and they'll be paying me, do i need to include VAT? Not to sure because its a bit of both offline and online.
    Also should i include tax? so i dont loose out?

    Sorry for all the questions its just im new to offline marketing.
     
  2. oxonbeef

    oxonbeef BANNED BANNED

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    Only ever charge VAT if you are registered for it or you are committing fraud.
    Here you will find a list of VAT chargeable goods and services.
    Code:
    http://www.hmrc.gov.uk/vat/managing/charging/charging.htm
     
  3. biker

    biker Newbie

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    Hi Theodore,

    You can't charge VAT unless you're VAT registered - in which case you don't get a choice anyway! If you're dealing with VAT registered businesses it might be worth considering voluntarily registering for VAT (daft as that might sound) because then the business can claim the VAT back. It makes no difference to your bottom-line, but a big difference to theirs. From your point of view it means that you can start to claim VAT back on your business expenses too - but be careful if you go this route not to register your own self as the business. This would result in you having to charge VAT on everything you do professionally AND personally as the taxman won't be able to separate the two.

    I'm no accountant but I have been self-employed all my working life and have dealt with offline businesses for most of that.

    As you're starting out - if you only deal in small amounts of money then it's probably not worth the hassle yet, but if you expand or charge a lot of money then you're going to have to do it eventually anyway. Online or offline makes no difference to Mr Taxman.

    As far as adding the tax onto your prices - absolutely. You're going to have to pay it and you have a figure in mind that you need to come out with - NET - so make sure you do. Bottom line - this is a business so charge like one. If it's just a hobby then forget all the above :).

    Hope that helps.
     
  4. Theodore

    Theodore Power Member

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    so if im not registered i dont need to? All im doing is basically giving a review about a business and ranking #1 in google and there paying me. I'm just clueless when it comes to stuff like this lol
     
  5. Theodore

    Theodore Power Member

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    Thank you very much biker for the long explanation. I really appreciate the detail you went in too. It is going to be my business, but at the minute it will only be 100-300 a month.

    Also oxonbeef thank you for the link, im reading it now.
     
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  6. biker

    biker Newbie

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    Pleasure :)

    Just FYI, the compulsory VAT registration is (from memory) somewhere over around £65k, so if you ever start earning that kind of dosh, you won't have a choice and will have to register for VAT. But at the level you're talking about it's not worth the hassle IMHO.

    Good luck with your venture.
     
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  7. swampcat

    swampcat Newbie

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    It's not a case of not NEEDING to charge vat if you're not registered.
    You're not ALLOWED to if you're not registered and you HAVE to if you are registered.

    As someone already explained, if your business turnover (no matter whether online or offline) is more than £70K per year then you must become VAT registered and start charging your customers the tax.
    Until then it's probably best if you stay as you are - much less hassle and less costly admin.
     
  8. mattbowden

    mattbowden Regular Member

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    Personally I would register as a sole trader or ltd company you can do that for about £20 gbp. Also if you do also dont forget from the 4th of jan the rate will rise to 20 percent in the uk
     
  9. mattbowden

    mattbowden Regular Member

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    65 plus is only if you are a limited company as a sole trader you can charge vat but its earning up to 65 k
     
  10. social engineer

    social engineer Regular Member

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    online is alot easyier to hide from Mr Taxman though! ;)