1 day consultancy

tiffenster

Hi
I have been offered 1 days consultancy. Do I need to register for VAT? Do I need to charge vat on the invoice and does anyone have an invoice tool?

Pennywise

No you don't need to register unless the work is valued at over £85k (VAT registration threshold).

If you're not registered, you can't charge VAT and you can't mention VAT on your invoice at all.

Mistral001

Pennywise wrote: »

No you don't need to register unless the work is valued at over £85k (VAT registration threshold).

If you're not registered, you can't charge VAT and you can't mention VAT on your invoice at all.

Just to pedantic. I am not VAT registered and state on my invoices "that I am not VAT registered and do not charge VAT". I do it as when I sent out my first invoices without any mention of VAT, some clients would query whether my invoice included VAT. Is this a good idea or is it even legal?

tacpot12

Mistral001 wrote: »

Just to pedantic. I am not VAT registered and state on my invoices "that I am not VAT registered and do not charge VAT". I do it as when I sent out my first invoices without any mention of VAT, some clients would query whether my invoice included VAT. Is this a good idea or is it even legal?

I think this is a good idea and in my opinion it is legal - there are certain prescribed items that must be included on an invoice to make it a VAT Invoice, and a VAT registered company must issue a VAT invoice when it has charged VAT, but saying that " I am not VAT registered and do not charge VAT" does not make the invoice a VAT invoice, so I can't see that you are breaking the law by issuing such an invoice.

I can't find anywhere where the primary legislation or HMRC guidance says that an invoice cannot have the word VAT on it, but I might have missed it somehow, so if anyone knows where the primary legislation that states this is to be found, please let me know.

Mistral001

An invoice must have your name and address on it if you are sole trader. A full list of what you must put on an invoice in the UK can be found here:

https://www.gov.uk/invoicing-and-taking-payment-from-customers/invoices-what-they-must-include

Note this varies from country to country so I would not use just any old template as many are designed just for the USA.