Going Self Employed

chrisb1357

Evening all,

Just a question to ask. I am going to charge for my hour fee of £20.00 per hour. As i am not VAT registerd do i just charge the £20.00 and say that includes VAT

chris

PlutoinCapricorn

No, don't say that! When you discuss terms, you can say that VAT is not applicable. There is no need to mention VAT on your invoices if you are not registered.

chrisb1357

Ok so if someone like has my PC service for 1 hour at £20.00 then the receipt would be £20 and on the books it would be the same and no mention of VAT anyware

Chris

malcolmcoles

Don't mention VAT. You can't charge VAT when you sell your services. You can't reclaim VAT when you pay it out. Don't pretend to be VAT registered.

PlutoinCapricorn

If the client asks why you are not charging VAT, simply tell them that you are not registered. It makes you more competitive.

Saying that your prices include VAT is unwise as this suggests that you ARE registered and in this case the VAT should be shown separately.

chrisb1357

Many Thanks.

I have listen to your advice

Chris

Sportbilly_2

chrisb1357- this is a great thread as I'm in the same boat as you, although I'm doing software applications rather than hardware. Thanks for starting it and thanks to the people who've helped you as they've helped me out too.