VAT on single job

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BAsh

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I am currently employed and pay tax through the PAYE system. I have been asked to do a one off job and wanted to know how I charge for VAT and do I then have to register for VAT??
 
BAsh said:
I am currently employed and pay tax through the PAYE system. I have been asked to do a one off job and wanted to know how I charge for VAT and do I then have to register for VAT??
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What is value of the job.

It sounds like a small job so more than likely dont charge or reclaim vat, no need to vat register.

give more details of job and price to get more accurate answer

you should pay tax on tax return on any profit from job
 
BAsh said:
... how I charge for VAT and do I then have to register for VAT??
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If you are not VAT-registered, you cannot charge VAT.

Also note that unless you are registered as a sole-trader, the notion of "profit" disappears and you simply report the earnings (Invoice value) from the job as income.

See queries by previous poster, above.
 
Thanks for your help. I will be invoicing them a bill for 3,500 I have to pay about 1000 to other contractors and will earn 2,500 myself. The company is based in the UK so that last comment is helpful.
 
BAsh said:
Thanks for your help. I will be invoicing them a bill for 3,500 I have to pay about 1000 to other contractors and will earn 2,500 myself. The company is based in the UK so that last comment is helpful.
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Only if you are VAT registered though, 3500/yr is below the VAT threshold, so no need to register. just declare 2500 as additional income on a Form 12 next year. you will be taxed at your marginal tax rate
 
Don't forget, if you dont register you will not be able to claim back the other contractor's VAT.
 
Sorry slightly confused. So I don't have to register for VAT because it is below the threshold correct? So when I invoice the job do I leave the VAT off?
 
You are not required to be VAT registered at 3500/year, therefore you don’t charge it and you don’t mention it at all. You may wish to mention there is no VAT charged as your business is not VAT registered if people ask, but you simply don’t need to mention it at all.
 
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