M
Moonycat
Guest
Hello,
I would be very grateful for any insight into my situation. I've recently registered as a sole trader. I provide copywriting services to companies as well as online editing for a magazine (so I invoice the publisher). So far, all of my clients are based in the UK.
I am not yet registered for VAT but I have had to re-consider this as I could end up closer to the threshold than I ever anticipated in 2013 following some good news received this week.
When is the best time to register for VAT? Should I just do it now, or wait till the New Year?
I understand I am providing Fourth Schedule services to the UK, therefore I would be charging 0% VAT and the burden of VAT is on my clients - is that correct?
How does that affect existing clients - clients who would up to now have been receiving non VAT invoices from me - will my services be costing them more when I register for VAT or can they claim some or all of their UK VAT back?
Should I write to them to explain the situation or can I assume they know how to deal with this? How do I explain it to them in the clearest manner?
Apologies if this sounds ignorant but I'm struggling to understand and do the right thing and am a bit terrified of losing business.
I intend on sorting out an accountant but I need my finances to be healthier before I can consider this.
Thanks in advance!!
I would be very grateful for any insight into my situation. I've recently registered as a sole trader. I provide copywriting services to companies as well as online editing for a magazine (so I invoice the publisher). So far, all of my clients are based in the UK.
I am not yet registered for VAT but I have had to re-consider this as I could end up closer to the threshold than I ever anticipated in 2013 following some good news received this week.
When is the best time to register for VAT? Should I just do it now, or wait till the New Year?
I understand I am providing Fourth Schedule services to the UK, therefore I would be charging 0% VAT and the burden of VAT is on my clients - is that correct?
How does that affect existing clients - clients who would up to now have been receiving non VAT invoices from me - will my services be costing them more when I register for VAT or can they claim some or all of their UK VAT back?
Should I write to them to explain the situation or can I assume they know how to deal with this? How do I explain it to them in the clearest manner?
Apologies if this sounds ignorant but I'm struggling to understand and do the right thing and am a bit terrified of losing business.
I intend on sorting out an accountant but I need my finances to be healthier before I can consider this.
Thanks in advance!!