Self employed and VAT 3 December 2022 at 6:27PM in Cutting tax 6 replies 159 views

sultan123

I have a regular job and then self employed income too as sole trader.

Income from self employed is about 25k from tax year. 

Overall income from both is over 100k.

My understanding is I do not need to be VAT registered as sole trader as less than 85k per tax year earned as sole trader.

If I have expenses, so for example a notepad costs £10 and £2 of that £10 is included as VAT, can I claim for full amount of £10 as expense or can I only claim for £8?

purdyoaten2

If something costs £10 including VAT that’s £8.33 plus VAT of £1.67.

You claim the £10.

sultan123

purdyoaten2 said:

If something costs £10 including VAT that’s £8.33 plus VAT of £1.67.

You claim the £10.

Thanks and I am right in thinking no need for VAT registration unless ONLY self employed income above 85k?

Or is it for both normal income (PAYE) and self employment together that 85k is included?

purdyoaten2

Self-employed income only. 

Dazed_and_C0nfused

@sultan123 I know you learn a lot from these boards but in all honesty now you have income above £100k and a business with turnover which many people would survive on as their only source of income you would genuinely benefit from professional advice.

Chances are it will pay for itself in tax savings 😊

purdyoaten2

Dazed_and_C0nfused said:

@sultan123 I know you learn a lot from these boards but in all honesty now you have income above £100k and a business with turnover which many people would survive on as their only source of income you would genuinely benefit from professional advice.

Chances are it will pay for itself in tax savings 😊

Benefit of the doubt given on this thread.

Marcon

sultan123 said:

I have a regular job and then self employed income too as sole trader.

Income from self employed is about 25k from tax year. 

Overall income from both is over 100k.

My understanding is I do not need to be VAT registered as sole trader as less than 85k per tax year earned as sole trader.

If I have expenses, so for example a notepad costs £10 and £2 of that £10 is included as VAT, can I claim for full amount of £10 as expense or can I only claim for £8?

You are asking a surprising range of extremely basic questions about VAT, pensions and so on for someone with earnings of the level you outline. Investing in professional advice might be worth its weight in gold - as would some tuition in the use of google, which would make you much more self-sufficient in terms of acquiring basic knowledge quickly and easily, rather than constantly relying on someone who knows their onions picking up on one of your threads.