In the UK, should self-employed individuals start charging VAT if the turnovers are over £85,000, so if I use someone under that threshold I do not need to pay VAT?
Answer by: abdullah-al-naim
3 days ago
In the UK, should self-employed individuals start charging VAT if the turnovers are over £85,000, so if I use someone under that threshold I do not need to pay VAT?
If your annual turnover is greater than whatever the current minimum amount is (£85,000), then you MUST register for VAT, and you MUST charge it at whatever is the current rate, on VATable goods and services. At the end of each period (usually 3 months) you MUST subtract the VAT you have paid (“VAT Out”) from the VAT you have charged (VAT In) and pay the difference to HMRC.
If you are not registered for VAT, you must not charge it. So for you as a customer, if you are buying goods or services from a small business that is not VAT-registered, you will not be charged VAT.
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