Contract Xchange

littleange

Gavin_R wrote: »

No because your paid the call rate plus VAT. So you just need to put the VAT away until its due in a savings account or similar.

What about other money I earn through self employment though?

taffy056

littleange_com wrote: »

What about other money I earn through self employment though?

its taxed after deductions, like business expenses and so on, what I have done is asked them to hold back my 17.5% for vat, and another 12.5% for most of my taxes at the end of the year, but you can withdraw that at anytime as you will have a like virtual bank (kinda like paypal) that withdraws to your bank

taffy056

also I think there is a flat rate of vat of 12.5% <?> for businesses, somebody mentioned it earlier, but haven't had time to do a big search on it

littleange

What I meant was I'll have to then pay VAT on any other income I made besides this, therefore, paying more tax.

taffy056

littleange_com wrote: »

What I meant was I'll have to then pay VAT on any other income I made besides this, therefore, paying more tax.

you would need to speak to someone about that I am afraid, I wouldn't want to say something then its the wrong info, just ask an accountant, most will not charge for the answer, if they think you will become a client.

littleange

Thanks for all your help.

Gonna have to give this some more thought and will have a think about it whilst I am on holiday next week.

If you aren't dealing with gas/elec, what are you dealing with?

You don't have to set up as a limited company for this do you?

littleange

taffy056 wrote: »

you would need to speak to someone about that I am afraid, I wouldn't want to say something then its the wrong info, just ask an accountant, most will not charge for the answer, if they think you will become a client.

I used to work in an accountants lol

You would have to charge VAT on any self employed work you did if you were registered for VAT unless you set your businesses up as separate limited companies

So if you are only doing this then I guess there is no problem, seems like a bit of extra work though with the setting up and having to fill in quarterly VAT returns etc

mstopham

littleange_com wrote: »

What I meant was I'll have to then pay VAT on any other income I made besides this, therefore, paying more tax.

I think the thing here is income, the charge you apply to contractxchange is a service hence having VAT on it. It is not an income as such, you charge for your service, take off costs (Overheads, bills etc) and you are left with gross profit, this is then taxed and you are left with net profit.

Income is similar but seperate so no becoming VAT registered will not mean you pay VAT on your other income (unless they are services/goods you "sell" to someone).

My father ran a VAT registered business and also worked part time for the RAF. His RAF income was taxed like PAYE. He just declared his earnings in his accounts and the accountant did the rest but he never paid VAT on this income.

littleange

mstopham wrote: »

I think the thing here is income, the charge you apply to contractxchange is a service hence having VAT on it. It is not an income as such, you charge for your service, take off costs (Overheads, bills etc) and you are left with gross profit, this is then taxed and you are left with net profit.

Income is similar but seperate so no becoming VAT registered will not mean you pay VAT on your other income (unless they are services/goods you "sell" to someone).

My father ran a VAT registered business and also worked part time for the RAF. His RAF income was taxed like PAYE. He just declared his earnings in his accounts and the accountant did the rest but he never paid VAT on this income.

I meant self employed income not PAYE

littleange

I've just spoken to VirginMedia and have managed to rearrange my package to get a phone line installed for the same price I am paying now! So if I don't end up doing this, I'm not paying extra for a phoneline I don't need.