VAT when employed and self employed

kernowkarmann · 18 October 2019 at 3:02PM

Hi,

I have a quick question:

If I am employed and earn say 40k then I do consultancy work for say £60k in a year - when does any need to pay VAT kick in? Is it just when the consultancy payments go past the threshold or is it the total pay?

I'm guessing it can't be the total pay as then people earning over that threshold in PAYE would pay VAT....

Robin9 · 18 October 2019 at 3:13PM

VAT is associated with goods and services (like consultancy) It has nothing to do with PAYE

I think VAT threshold is £85,000 - you need the advice of your accountant.

TheCyclingProgrammer · 18 October 2019 at 3:23PM

Ignore your employment income.

When your self employed consultancy work exceeds £85k turnover in any 12 month rolling period you need to register for VAT.

kernowkarmann · 18 October 2019 at 3:32PM

thanks, that's what i thought, nice to have confirmation

VAT when employed and self employed

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