UK sole trader tax advise

Discussion in 'Business & Tax Advice' started by MrClifford, Jul 27, 2014.

  1. MrClifford

    MrClifford Registered Member

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    Last edited: Jul 27, 2014
  2. jammie

    jammie Power Member

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    VAT registration cut off is 81k so you dont have to even bother thinking about it.

    Basically, if you register for VAT (can do it regardless of gross income, but have to over 81k), you claim back the VAT on your purchases so it's not paid twice. Currently you can imagine you buy a product with VAT and then sell that on to the customer with VAT (although it may not be that explicit).

    Of course, if you sell products exempt from VAT, you dont have to register.

    google VAT registration for the HMRC website, it covers most of the ground you'll need.

    Only certain products/services include VAT so you can't just take off 17.5%. You're probably better of registering as a company and registering for VAT so you can get the tax benefits. i.e. VAT reclaim on fuel for "business trips", expenses for daily sustenance, business purchases etc. You can effectively pay <5% tax if you're smart and have a friendly accountant.

    Good luck!
     
  3. MrClifford

    MrClifford Registered Member

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    Ill check it out, it will all be digital goods so may not even have to +VAT onto them. Less than 5% tax sounds good to me! How does this reflect onto my PAYE? Cheers for your input!
     
  4. davids355

    davids355 Moderator Staff Member Moderator Jr. VIP

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    You pay VAT when you buy something, then you charge it when you sell. So it doesn't make any difference.
    In fact, once you become VAT registered you should be better off - because a lot of things that have VAT on them so even if your not VAT registered, you still pay that VAT, but once you become registered, you can charge it when reselling.
     
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  5. trevormorley

    trevormorley Junior Member

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  6. MrClifford

    MrClifford Registered Member

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  7. mapp2819

    mapp2819 Regular Member

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    Some good information in this thread already. It's worth speaking to an accountant about this though, it could save you lots of hassle, costs, etc in the long term.
     
  8. Castiel999

    Castiel999 Junior Member

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    Hi as everyone seems to be giving tax advice .I would like to know if any non-uk resident is earning from azon's u.k. program so what do we need to do.For the U.S. It was the EIN & W8-BEN .Likewise what do we need to fill for double tax avoidance.
     
  9. DanDanger

    DanDanger Junior Member

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