If your career as a freelancer is particularly successful, you may find your turnover of VAT-taxable goods and services crosses the VAT threshold, and you’ll need to register for VAT.
You can register for VAT online. When you register for VAT you’ll be sent a VAT registration certificate that tells you:
- Your VAT number (you can’t charge VAT until you have this number).
- Your official date of VAT registration.
- When you need to submit your first VAT return.
What happens once you’re VAT registered?
Following your official VAT registration date you:
- Must charge the right amount of VAT.
- Must keep VAT records and a VAT account.
- Can reclaim any VAT you have paid on purchases.
- Must submit quarterly VAT returns.
- Must pay any VAT due to HMRC.
If anything changes in your freelance career, for example if you move home, change bank or begin providing a different service, you need to tell HMRC by submitting this form or logging onto your online account.
Flat rate VAT
If your VAT turnover is less than £150,000 you can choose to join the flat rate VAT scheme instead.
If you use an accountant they can explain how VAT works, and complete your VAT registration for you.Hannah Martin