Self Employed Tax Guide Primus Tax Experts

Self Employment Tax Guide​

VAT Considerations

If your business has a turnover of more than £85,000 (for the year from April 2017) over a 12 month period, you must also register your business for Value Added Tax (VAT).

When you are VAT-registered you will need to add VAT to all of your sales invoices. You will also be able to reclaim the VAT you have paid on business expenses and some capital purchases.

In some circumstances, it may be beneficial to register your business for VAT, even if your turnover is below the VAT threshold. This is usually the case if the majority of your clients are business customers who can reclaim the VAT you charge them.