Hi all,
On the side, I play in a band. We have been going for a few years earning a few bob which was always under 5K when divided among our members, so we just declared as excess income via ROS as we are not a registered business. Last year we had quite a busy schedule and managed to bring in over 40K which is veering into VAT territory. I'm trying to rack my brain to figure out what to do.
From the info avail. online I've gathered the VAT registration thresholds apply to the overall income, not the individual income of each person. But anywhere this is mentioned it refers as to a business, which we are not. Should we be registered?
In either case the total amount is above the €37,500 threshold for the supply of services. Therefore, if your our income primarily comes from services (like performances or royalties), I'm assuming we would generally be required to register for VAT. But what if we're expecting a quieter year this year?
Sorry if this is vague at all - I'm just trying to make sure we're all doing the right thing.
On the side, I play in a band. We have been going for a few years earning a few bob which was always under 5K when divided among our members, so we just declared as excess income via ROS as we are not a registered business. Last year we had quite a busy schedule and managed to bring in over 40K which is veering into VAT territory. I'm trying to rack my brain to figure out what to do.
From the info avail. online I've gathered the VAT registration thresholds apply to the overall income, not the individual income of each person. But anywhere this is mentioned it refers as to a business, which we are not. Should we be registered?
In either case the total amount is above the €37,500 threshold for the supply of services. Therefore, if your our income primarily comes from services (like performances or royalties), I'm assuming we would generally be required to register for VAT. But what if we're expecting a quieter year this year?
Sorry if this is vague at all - I'm just trying to make sure we're all doing the right thing.