At our open day in November 2012, we were delighted that Antony Federer from Rayner Essex accountants popped in with cake, and to give a talk entitled “Tax Tips – My top 5 for freelancers.” Here is his fifth top tax tip.
This was a lively presentation with plenty of interaction and discussion – thank you Antony. Here is the last of his five top tips:
Register for VAT
I thought that you had to have a high income to charge VAT. But as they say, you learn something new every day!
If you use the Flat Rate Scheme, and many of your customers are UK-based, you may well save money. You charge customers VAT at the current rate (20%) and they will reclaim it. You then pay HMRC 12 to 14%. This is a special scheme for those with and income of less than £150k pa.
If this has given you food for thought, then do consult a reputable accountant to help you further. This information was correct at time of Antony’s presentation in November 2012.