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Should I register for VAT?

Discussion in 'Business and Contracts' started by Amyedits, Feb 14, 2017.

  1. Amyedits

    Amyedits New Member

    Hi guys,

    So I was wondering if anyone could help me...

    I'm based in the UK and currently not earning any money but looking to start gaining freelance work through upwork.com.

    However, when setting up my freelancer profile they mention I'll be charged VAT on the 10% service charge they take from me.

    I don't have a VAT number yet but I have the option to enter my VAT number if I did have one.

    I currently don't have any clients but I'm trying to work out if it's worth me applying for a VAT number and entering it so I won't have to pay the upwork VAT fee, (am I understanding that right)?

    Essentially I want to work out if it is worth me registering for a VAT number?

    • What are the reasons why I should / should not do this in specific relation to upwork.com.

    • If I register for VAT does that mean I have to start paying it to HMRC? If so is that 20% of everything I earn?

    Here's a link to their website explaining the VAT rules, I struggled to understand it all.
    https://support.upwork.com/hc/en-us/articles/211061278-EU-Value-Added-Tax-VAT-#entering



    Thanks x
     
  2. Lupita

    Lupita Member

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