Looking at doing some work to the side of my main job as a sole trader. If it goes well, I hope to quit my job and go full time.
I'm a little confused about VAT registration. Particularly with regard to the thresholds. As I'm not sure if I'll ever hit them.
If I don't register for VAT, earn under the threshold for say, 6 months, then pass it in the last 6 months, am I liable for VAT for all work I've done in the 12 month period? Am I supposed to go back to clients and ask for more money?
I assume that if I were to charge VAT if I'm not yet registered would be illegal? Even if I refunded it to the clients if I end up being under the threshold and not registering?
And when it says €37,500 in a continuous 12 month period, say I earn 1k a month January to August, then 5k a month the following months, that's 28k for the year. But in March, I'll exceed 37,500 on a rolling year basis. Does April - March become the period in which VAT is payable?
Also, am I correct that the money I earn as a wage as an employee has no bearing on my VAT at all? It doesn't count towards my allowance, or would I have to pay VAT on it.
Also, I've been planning this business for 2 years, and have bought equipment, software etc for it. Am I correct that business expenses I incurred in the past 4 years can be claimed back? And how does this work if I'm using the Moneys received basis? Do I put all my expenses for this period in my first VAT return?
I'm a little confused about VAT registration. Particularly with regard to the thresholds. As I'm not sure if I'll ever hit them.
If I don't register for VAT, earn under the threshold for say, 6 months, then pass it in the last 6 months, am I liable for VAT for all work I've done in the 12 month period? Am I supposed to go back to clients and ask for more money?
I assume that if I were to charge VAT if I'm not yet registered would be illegal? Even if I refunded it to the clients if I end up being under the threshold and not registering?
And when it says €37,500 in a continuous 12 month period, say I earn 1k a month January to August, then 5k a month the following months, that's 28k for the year. But in March, I'll exceed 37,500 on a rolling year basis. Does April - March become the period in which VAT is payable?
Also, am I correct that the money I earn as a wage as an employee has no bearing on my VAT at all? It doesn't count towards my allowance, or would I have to pay VAT on it.
Also, I've been planning this business for 2 years, and have bought equipment, software etc for it. Am I correct that business expenses I incurred in the past 4 years can be claimed back? And how does this work if I'm using the Moneys received basis? Do I put all my expenses for this period in my first VAT return?