VAT Registration

VAT Registration

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Hi,

I'm hoping somebody can help me. I have a friend who is self-employed. He only works for one business and there is no intention of that changing at any point in the near future. He's definitely self-employed. He works his own hours, brings his own tools & equipment, decides what work he is doing next. He doesn't get any holiday or sick pay. He completes a self-assessment form, pays his own National Insurance etc.

My question is; he is thinking of going VAT registered. I'm sure I read somewhere that if you only had one place of employment then you couldn't register for VAT? Is this correct?

Any input would be greatly appreciated.

Thanks

Replies (4)

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By cwalker83852
06th Apr 2016 10:14


Ignoring the IR35 etc etc etc.

That is completely false.  The amount of clients you have does not impact whether or not you should sign up for VAT.

Thanks (1)
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By mely
06th Apr 2016 11:21

Possible issue, yes.

There is an issue with employment status (inc. IR35) and vat registration. Broadly income deemed employment income, rather than trading income, is outside the scope of VAT. Have a read of VTAXPER33000 +

Thanks (2)
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By Kevin Kavanagh
06th Apr 2016 13:13

IR35 is not relevant here. The OP describes his friend as self employed; no mention is made of him operating via a Limited Company. So, assuming the individual should be self employed, and is not actually a disguised employee then of course he needs to be VAT registered if over the threshold. And if not he can register voluntarily.

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Replying to lionofludesch:
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By mely
06th Apr 2016 14:03

IR35

Only mentioned IR35 as it was raised by the first respondent. Agree IR35 is not an issue for the OP. Employment status, however, is an issue although the OP appears happy the evidence falls on the side of self-employment. IR35 may not be an issue in the wider context of taxable persons either, probably not.

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