We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

PayPal Invoices - VAT?

Options
It seems from the information I received when filling in a PayPal invoice that I should be charging my clients VAT. But isn't that just for businesses? I don't remember a section for VAT on my tax form?
Advent Challenge: Money made: £0. Days to Christmas: 59.
«1

Comments

  • antrobus
    antrobus Posts: 17,386 Forumite
    fewgroats wrote: »
    It seems from the information I received when filling in a PayPal invoice that I should be charging my clients VAT. But isn't that just for businesses? I don't remember a section for VAT on my tax form?

    If you have clients, how are you not running a business?
  • lovinituk
    lovinituk Posts: 5,711 Forumite
    1,000 Posts Combo Breaker
    As above, sounds like you are a business. BUT, are you a VAT registered business?
  • Aquamania
    Aquamania Posts: 2,112 Forumite
    fewgroats wrote: »
    It seems from the information I received when filling in a PayPal invoice that I should be charging my clients VAT. But isn't that just for businesses? I don't remember a section for VAT on my tax form?

    You cannot charge VAT unless you are registered for VAT.

    If you are registered for VAT, I'm sure you would be aware that you should be charging VAT on appropriate sales.

    :)
  • fewgroats
    fewgroats Posts: 774 Forumite
    Fifth Anniversary 500 Posts
    edited 10 June 2016 at 1:39PM
    I'm still confused if I should be registered for VAT? Could MSE forum users please understand I have not got a business and work from there? Thank you.
    Advent Challenge: Money made: £0. Days to Christmas: 59.
  • martindow
    martindow Posts: 10,566 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    fewgroats wrote: »
    Could MSE forum users please understand I have not got a business and work from there? Thank you.
    I don't understand this. In your OP you talk of your clients so you do seem to have a business.

    You are obliged to register for VAT if your turnover goes over certain figures - details here for this year's allowances

    https://www.gov.uk/vat-registration-thresholds
  • lovinituk
    lovinituk Posts: 5,711 Forumite
    1,000 Posts Combo Breaker
    fewgroats wrote: »
    Could MSE forum users please understand I have not got a business and work from there?
    Work from where? Who are your clients?
  • fewgroats
    fewgroats Posts: 774 Forumite
    Fifth Anniversary 500 Posts
    edited 10 June 2016 at 2:56PM
    Surely everyone who has used EBay has sent some kind of PayPal invoice? What's so hard to understand here, people?

    They are people I write content for, BTW.
    Advent Challenge: Money made: £0. Days to Christmas: 59.
  • lovinituk
    lovinituk Posts: 5,711 Forumite
    1,000 Posts Combo Breaker
    fewgroats wrote: »
    Surely everyone who has used EBay has sent some kind of PayPal invoice? What's so hard to understand here, people?

    They are people are write content for, BTW.
    So you charge people to write content for them? Then you have a business because you are providing a service for money!

    No I generally don't send Paypal invoices for eBay sales as eBay sends invoices for you.
  • fewgroats
    fewgroats Posts: 774 Forumite
    Fifth Anniversary 500 Posts
    Sorry to be blunt, but how about this comment?
    "I don't know. I'm not a freelancer. I'm confused about freelancing."
    Advent Challenge: Money made: £0. Days to Christmas: 59.
  • lovinituk
    lovinituk Posts: 5,711 Forumite
    1,000 Posts Combo Breaker
    fewgroats wrote: »
    Sorry to be blunt, but how about this comment?
    What's that comment got to do with anything?

    You are providing a service and you are earning money from it so you are a self employed sole trader i.e. a business.

    It sounds like you are declaring your income via tax returns which is good, but you should also be registered with HMRC as self employed and may need to be paying some National Insurance depending on if you are also employed or not.

    I doubt very much you need to be VAT registered unless you are earning over the VAT threshold.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.6K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.