Sole Trader VAT - Approaching Threshold

fitz

Registered User
Messages
26
Hi

I have searched some of the posts but don't think I have answers to my questions. I am self employed coach / consultant / lecturer. Last few years I have been under the €37.5k threshold however now I am approaching it. My questions:
  1. I do some teaching work for two universities - they treat me as a part-time employee with PAYE etc.. deducted at source. Does this income count towards my threshold? If so, presumably the gross amount?
  2. When I register for VAT (inevitable I think), do I start charging VAT on every invoice from that point and none before?
  3. I presume this is irrespective of whether I am in the middle of a project with the client or not? (I envisage the client won't be too happy when I start adding 23% onto every invoice).
  4. Which of my work (coach / consultant / lecturer) are VAT chargeable? All?
Thanks in advance.
 

T McGibney

Registered User
Messages
3,954
  1. I do some teaching work for two universities - they treat me as a part-time employee with PAYE etc.. deducted at source. Does this income count towards my threshold? If so, presumably the gross amount?
No
  1. When I register for VAT (inevitable I think), do I start charging VAT on every invoice from that point and none before?
Yes - assuming you register at the correct and appropriate time. If you get it wrong and Revenue insist on backdating your registration, you'll have to account for and pay VAT on receipts from that date.
  1. I presume this is irrespective of whether I am in the middle of a project with the client or not? (I envisage the client won't be too happy when I start adding 23% onto every invoice).
Yes. If you've negotiated a fixed rate with them and they're not in a position to recover the VAT, you may have to stump up the VAT liability from your own resources.
  1. Which of my work (coach / consultant / lecturer) are VAT chargeable? All?
Education and some training activities are VAT exempt. Otherwise all self-employment work can be assumed to be chargeable. You may need professional advice unless you're certain on the VAT status of your roles and how VAT works in practice.
 
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fitz

Registered User
Messages
26
Thanks for those replies.

On the first question - is it a "no" because they're educational institutes or because its "PAYE" income?
 

Salvadore

Registered User
Messages
130
Does the 37.5 limit apply to the accumulated value of relevant invoices issued or to profit arising from associated revenue?
 
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