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VAT question
I have been a freelance cameraman for many years and I am VAT registered using the flat rate scheme. For the last 3 years I have been studying whilst continuing to do a reduced amount of camerawork.
I have just accepted a full time post in my new career (academic), but will still do occasional weekend freelance work to top-up my earnings and may even go fully freelance again in the future as a consultant in my new field, so I would rather stay VAT registered. I would also have to pay some VAT back on depreciated equipment if I deregistered.
My question is: can I remain VAT registered for my small amount of freelance work over the next year or two and at the same time be employed full time in my new job, for which I will be paid a salary and not able to charge VAT? My understanding is that this should be possible as the new job is not part of my self employed (sole trader) business to which the VAT is registered, but it's difficult to find a definitive answer.
I have just accepted a full time post in my new career (academic), but will still do occasional weekend freelance work to top-up my earnings and may even go fully freelance again in the future as a consultant in my new field, so I would rather stay VAT registered. I would also have to pay some VAT back on depreciated equipment if I deregistered.
My question is: can I remain VAT registered for my small amount of freelance work over the next year or two and at the same time be employed full time in my new job, for which I will be paid a salary and not able to charge VAT? My understanding is that this should be possible as the new job is not part of my self employed (sole trader) business to which the VAT is registered, but it's difficult to find a definitive answer.
- Contact in PM
TheLowTaxGroup
Messages count : 5Likes count : 0Registration : 3 August 2011Reply to VAT question from The LowTax Group
SteveCam, post: 17913 a écrit : I have been a freelance cameraman for many years and I am VAT registered using the flat rate scheme. For the last 3 years I have been studying whilst continuing to do a reduced amount of camerawork.
I have just accepted a full time post in my new career (academic), but will still do occasional weekend freelance work to top-up my earnings and may even go fully freelance again in the future as a consultant in my new field, so I would rather stay VAT registered. I would also have to pay some VAT back on depreciated equipment if I deregistered.
My question is: can I remain VAT registered for my small amount of freelance work over the next year or two and at the same time be employed full time in my new job, for which I will be paid a salary and not able to charge VAT? My understanding is that this should be possible as the new job is not part of my self employed (sole trader) business to which the VAT is registered, but it's difficult to find a definitive answer.
Yes it is possible. There is no need to charge VAT on your employed earnings and you can remain VAT registered on a voluntary basis for your self-employed income.
I note that you do not wish to deregister for VAT as you may have to repay the VAT claimed on items that you still hold. It is worth noting that the VAT is calculated on the value at the date of deregistration, which will probably be much lower than what you actually paid. There is also a de-minimus limit of £1,000 of VAT. Therefore, if the total second-hand value of the assets are less than £6,000 (including VAT) there is no need to repay any of the VAT. - Contact in PM
SteveCam
Messages count : 2Likes count : 0Registration : 3 August 2011
Many thanks for the info, very useful.TheLowTaxGroup, post: 17918 a écrit : Yes it is possible. There is no need to charge VAT on your employed earnings and you can remain VAT registered on a voluntary basis for your self-employed income.
I note that you do not wish to deregister for VAT as you may have to repay the VAT claimed on items that you still hold. It is worth noting that the VAT is calculated on the value at the date of deregistration, which will probably be much lower than what you actually paid. There is also a de-minimus limit of £1,000 of VAT. Therefore, if the total second-hand value of the assets are less than £6,000 (including VAT) there is no need to repay any of the VAT.