Useful VAT Registration Information

24601

Registered User
Messages
496
I've been doing a mixture of PAYE and self-employed work over the past couple of years and I recently agreed to take on a consulting contract which would result in my expected non-PAYE earnings being very close to exceeding €37,500 over the next 12 months (I would have to refuse all ad hoc work to stay under)

My accountant has been OK in assisting me in making decisions in relation to registration, but not great, so I'm just wondering are there any go to resources outlining the practical options for people close to the threshold so I could self-educate before making a decision/asking further questions?
 
The first question to ask:

Is you customer VAT registered?
Then do the care of you charge them VAT?

It may be the case that you are better off VAT registered as you can get the VAT back on purchases while not suffering any issues on sales.
 
The first question to ask:

Is you customer VAT registered?
Then do the care of you charge them VAT?

It may be the case that you are better off VAT registered as you can get the VAT back on purchases while not suffering any issues on sales.

Unfortunately all my current clients are VAT exempt (financial services) so I currently have a competitive advantage being below the threshold. My overheads are minimal in any case so claiming VAT back on purchases is small beer. My main issue is that I'm currently turning down work/projects due to the inflexibility of the PAYE work I do, but taking on much more consultancy work would result in either increasing prices significantly or taking the hit myself.
 
24601 you are alert to the threshold and seem aware that if you go over it that all the turnover will be deemed to include VAT which I think is most unfair. The limit is relatively low and turning down work seems insane. I think the timing of registration is key because of the 12 month rolling period (joe90 might confirm if I am right in this). This might mean delaying invoicing (but charging VAT on those invoices) so that you limit what retrospection you have. Pricing depends on the work you are doing - 23% of additional income may sound expensive - but many clients will understand the VAT issue and will realise that you are not getting it yourself. I would be concerned myself if I had only one client - but you seem to have more than one.
 
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