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Where Taxpayers and Advisers Meet

Should I register for VAT (some self employed income)

eve1
Posts: 4
Joined: Tue Dec 01, 2015 1:51 am

Should I register for VAT (some self employed income)

Postby eve1 » Mon Mar 12, 2018 1:33 am

I was self employed until a year ago, after which I became a full time employee, but still release an app or two now and then on the Apple app store which brings about £3-5k/year, so I still do self assessment. I do buy equipment (mainly new phones for development) for this work and I was reading on the HMRC website how you can reclaim the VAT of business purchases if you are VAT registered. However, I can't find any information about what that exactly means in respect to app store income - Apple receives and remits the appropriate tax for each region and I don't even see it in financial reports.
So, the first question is, can I even do a VAT registration?
The second question, even if I can, would I want to?
Thanks in advance,

Eve

les35
Posts: 528
Joined: Wed Aug 06, 2008 3:09 pm

Re: Should I register for VAT (some self employed income)

Postby les35 » Mon Mar 12, 2018 10:05 am

Your income, at present, is well below the VAT registration threshold.
You have been advised that VAT registration allows you to claim VAT, which is correct. But you will have to account for VAT on your sales. Your app sales to Apple will not be vatable (Apple are based outside the UK), so you will need the correct invoice wording for this.
Do speak to an Accountant about your income streams, and the VAT issues arising. Perhaps, given your low level of sales, it may be prohibitively expensive at this stage.

eve1
Posts: 4
Joined: Tue Dec 01, 2015 1:51 am

Re: Should I register for VAT (some self employed income)

Postby eve1 » Mon Mar 12, 2018 8:48 pm

Thanks for the answer.


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