VAT Advice please

Louiseuk25

Hi,

Am after some advice for my mum....she has recently signed up to do secretarial work via an internet site (they provide the dication for her to type up and send back to them) she will be paid 8p per line exclusive of VAT. She will have to invoice them monthly with what they owe her. My question is-will she need to standard rate VAT to her invoice?

Many thanks

Lou
x

heleen

I concur with the previous poster in terms of not needing VAT as long as under £60k (which at 8p per line I'm guessing is the case!).

However, it is not unusual for businesses to post prices exclusive of VAT. Yes, they would pay more if you were VAT registered, because they can claim it back so the net effect is the same. So there's nothign dodgy there in my view.

Dutchgirl.

RoB_Fernandez

VAT non-registered now under £61,000.

mariejader

Agree about the vat charging, so if my calculations are correct you mum will only be getting 6p per line and not the 8p advertised.

Then she will need to let the tax man know because she is then self employed and will have to submit records etc to the tax man, I am sure someone who is self-employeed will fill you in on the correct procedure.

Personally for this small amount I think she is taking on a whole lot of work if it was me I would not bother.

Pennywise

mariejader wrote:

Agree about the vat charging, so if my calculations are correct you mum will only be getting 6p per line and not the 8p advertised.

No. she will charge 8p per line and get 8p per line - if she isn't VAT registered there is no VAT. "Exclusive of VAT" means before VAT so that is what she gets.

Louiseuk25

Pennywise wrote:

No. she will charge 8p per line and get 8p per line - if she isn't VAT registered there is no VAT. "Exclusive of VAT" means before VAT so that is what she gets.

But she will probably get 6p per line by the time she has paid income tax and national insurance.

This will be a second income really-she works as a secretary as her main job so is a very fast typer. I've said that she should look at it more in how many lines she can do in an hour to get a better idea of the wage iygwim

Thanks for your advice,

Lou
x