VAT question

[david]

I run a limited company, currenty doing web design etc... for US clients and
getting paid in USD, therefore I am not registered for VAT.

Recently I started developing software which I plan to sell online only via
a 3rd party merhcant/biller, who'll then pay me. My business currently
turnovers and makes a profit of well over £61k per year, but that is from
the services I mention above. I estimate this software venture will not
exceeed, nor come close to the £61k threshold. Therefore, do I need to
register for VAT?

 

[Peter Saxton]

I run a limited company, currenty doing web design etc... for US clients and
getting paid in USD, therefore I am not registered for VAT.

Recently I started developing software which I plan to sell online only via
a 3rd party merhcant/biller, who'll then pay me. My business currently
turnovers and makes a profit of well over £61k per year, but that is from
the services I mention above. I estimate this software venture will not
exceeed, nor come close to the £61k threshold. Therefore, do I need to
register for VAT?

You will not have to register.

 

[david]

You will not have to register.

thanks, would i have to if the software side of my business starting
bringing in more than 61k?

 

[Peter Saxton]

thanks, would i have to if the software side of my business starting
bringing in more than 61k?

If it was all UK sales.

 

[DoobieDo]

thanks, would i have to if the software side of my business starting
bringing in more than 61k?

ignore dildo the sextoy... it's been drinking all day (again)

 

[david]

ignore dildo the sextoy... it's been drinking all day (again)

eh?

some in-joke I'm not getting?

 

[Peter Saxton]

eh?

some in-joke I'm not getting?

More of an out-joke.

Kill-files work wonders.

 

[Nogood Boyo]

Are you saying that you are not registered for VAT because you work for
US clients? Or because you get paid in USD?

Just because you only work for US clients, that doesn't mean that you
are not liable to register for VAT.

And the currency in which you are paid is irrelevant.

You need to look at the rules dealing with the "place of supply of
services" - HMRC Notice 741. They are not at all simple. Some services
are regarded as supplied where the customer belongs. Others where the
supplier belongs. Some things which you might regard as services are in
fact goods...

I've just looked at Notice 741 and it isn't clear to me whether "web
design, etc" services are made where the supplier belongs or where the
customer belongs. "Etc" covers a multitude of sins...

You will not have to register.

That depends on the correct liability of his work for US clients. We
don't have enough information to answer that.

 

[david]

That depends on the correct liability of his work for US clients. We
don't have enough information to answer that.

My accountant it was who said I didn't have to register

 

[Nogood Boyo]

My accountant it was who said I didn't have to register

Might be worth asking him to confirm that he's familiar with the Place
of Supply rules and that he's satisfied that your supplies are made
outside the UK...