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[Lazydocker]

I know that the answer to this is "ask your accountant" but, for reasons I'm not going into now, I wanted to ask here too....

My business is VAT registered. I am now looking at doing some consultancy work myself in addition to the current business. Do I need to charge it through the business and therefore charge VAT? Or can I just account for the income separately on my tax return?

Thanks in advance people

[zirk]

Is your business Ltd? or is it LD Trading As? in other words is your Limited Co Vat Registered or is it LD.

[Tony H]

To the best of my Knowledge if your business is not ltd it is you who is vat registered theirfore for any paid work you do is subject to charging vat.

[Lazydocker]

Is your business Ltd? or is it LD Trading As? in other words is your Limited Co Vat Registered or is it LD.

Ltd Company

[zirk]

To the best of my Knowledge if your business is not ltd it is you who is vat registered therefore for any paid work you do is subject to charging vat.

Yep, hence why I asked the question.

If your 'A N other Trading as Window Cleaners R Us', then its A N Other who is Vat Registered, so if A N Other decides he wants to supplement their income by baking Cakes on the side or teach how to bake Cakes, the each Cake sold or each Teaching period is subject to VAT being added to the Sale, Invoice / Receipt etc.

[zirk]

Is your business Ltd? or is it LD Trading As? in other words is your Limited Co Vat Registered or is it LD.

Ltd Company

In that case, if your doing other stuff outside of your limited company, its you and as long as you are not Vat reg then you dont charge or collect Vat or your services or sales, this is of course subject to all kinds of other stuff, ie, there is non conflict of interest with the limited company meaning its a way around not charging vat for the same product of services that the company would normally do, possibly having to be registered as self employed or trading as, or declaring your additional part time services / money making hobbies for tax deduction, etc etc etc.

[Lazydocker]

Is your business Ltd? or is it LD Trading As? in other words is your Limited Co Vat Registered or is it LD.

Ltd Company

In that case, if your doing other stuff outside of your limited company, its you and as long as you are not Vat reg then you dont charge or collect Vat or your services or sales, this is of course subject to all kinds of other stuff, ie, there is non conflict of interest with the limited company meaning its a way around not charging vat for the same product of services that the company would normally do, possibly having to be registered as self employed or trading as, or declaring your additional part time services / money making hobbies for tax deduction, etc etc etc.

I'm going to subcontract my services to Head Office negotiating/maintaining national contracts. This is subject to an agreed rate, hence my question. I'm fairly certain that I just declare it on my personal return but wanted someone else's opinion on it

[zirk]

Is your business Ltd? or is it LD Trading As? in other words is your Limited Co Vat Registered or is it LD.

Ltd Company

In that case, if your doing other stuff outside of your limited company, its you and as long as you are not Vat reg then you dont charge or collect Vat or your services or sales, this is of course subject to all kinds of other stuff, ie, there is non conflict of interest with the limited company meaning its a way around not charging vat for the same product of services that the company would normally do, possibly having to be registered as self employed or trading as, or declaring your additional part time services / money making hobbies for tax deduction, etc etc etc.

I'm going to subcontract my services to Head Office negotiating/maintaining national contracts. This is subject to an agreed rate, hence my question. I'm fairly certain that I just declare it on my personal return but wanted someone else's opinion on it

It depends, this is where the accountant comes in, is the Ltd Co your business, ie your a director / Share Holder, if so, are you PAYE, or self employed that invoices the ltd company.

[Lazydocker]

Is your business Ltd? or is it LD Trading As? in other words is your Limited Co Vat Registered or is it LD.

Ltd Company

In that case, if your doing other stuff outside of your limited company, its you and as long as you are not Vat reg then you dont charge or collect Vat or your services or sales, this is of course subject to all kinds of other stuff, ie, there is non conflict of interest with the limited company meaning its a way around not charging vat for the same product of services that the company would normally do, possibly having to be registered as self employed or trading as, or declaring your additional part time services / money making hobbies for tax deduction, etc etc etc.

I'm going to subcontract my services to Head Office negotiating/maintaining national contracts. This is subject to an agreed rate, hence my question. I'm fairly certain that I just declare it on my personal return but wanted someone else's opinion on it

It depends, this is where the accountant comes in, is the Ltd Co your business, ie your a director / Share Holder, if so, are you PAYE, or self employed that invoices the ltd company.

I'm the sole director and shareholder, PAYE.

[zirk]

Is your business Ltd? or is it LD Trading As? in other words is your Limited Co Vat Registered or is it LD.

Ltd Company

In that case, if your doing other stuff outside of your limited company, its you and as long as you are not Vat reg then you dont charge or collect Vat or your services or sales, this is of course subject to all kinds of other stuff, ie, there is non conflict of interest with the limited company meaning its a way around not charging vat for the same product of services that the company would normally do, possibly having to be registered as self employed or trading as, or declaring your additional part time services / money making hobbies for tax deduction, etc etc etc.

I'm going to subcontract my services to Head Office negotiating/maintaining national contracts. This is subject to an agreed rate, hence my question. I'm fairly certain that I just declare it on my personal return but wanted someone else's opinion on it

It depends, this is where the accountant comes in, is the Ltd Co your business, ie your a director / Share Holder, if so, are you PAYE, or self employed that invoices the ltd company.

I'm the sole director and shareholder, PAYE.

Then you should be fine declaring it on your Tax Return, at least for the first year, as it should be concerned as 'Aditional Income, Second Job, Part Time / Bit on the Side etc, but if it grows into something bigger or overtakes your PAYE status, then your probably have to address it differently somehow, also if it does become big, be aware of the VAT yearly Turnover threshold in which it becomes a requirement to be VAT registered. 

[Lazydocker]

Is your business Ltd? or is it LD Trading As? in other words is your Limited Co Vat Registered or is it LD.

Ltd Company

In that case, if your doing other stuff outside of your limited company, its you and as long as you are not Vat reg then you dont charge or collect Vat or your services or sales, this is of course subject to all kinds of other stuff, ie, there is non conflict of interest with the limited company meaning its a way around not charging vat for the same product of services that the company would normally do, possibly having to be registered as self employed or trading as, or declaring your additional part time services / money making hobbies for tax deduction, etc etc etc.

I'm going to subcontract my services to Head Office negotiating/maintaining national contracts. This is subject to an agreed rate, hence my question. I'm fairly certain that I just declare it on my personal return but wanted someone else's opinion on it

It depends, this is where the accountant comes in, is the Ltd Co your business, ie your a director / Share Holder, if so, are you PAYE, or self employed that invoices the ltd company.

I'm the sole director and shareholder, PAYE.

Then you should be fine declaring it on your Tax Return, at least for the first year, as it should be concerned as 'Aditional Income, Second Job, Part Time / Bit on the Side etc, but if it grows into something bigger or overtakes your PAYE status, then your probably have to address it differently somehow, also if it does become big, be aware of the VAT yearly Turnover threshold in which it becomes a requirement to be VAT registered.

yep. That was my thought. Only real concern is that it will probably end up paying more than I earn from the business as a director PAYE. But as long as I am declaring it then it should be ok. Thanks