Question for my fellow UK freelancers here I think…
I’ve done some searching and found a few topics regarding this, but nothing that really answered my question… figured I’d ask here.
I have a LTD Company setup for some contracting work I was doing earlier this year. Long story short, I registered for VAT at my accountant’s recommendation because the contract would have been greater than the VAT threshold, but unfortunately the demise of the company I was consulting for meant the contract was cut drastically short. Since then, we’ve been doubling down on freelance income, and mine (Tom) has become substantial enough that I’m now looking to live off of freelancing (here and on a handful of other sites).
I want to record the income through my LTD company, but as I’m now VAT registered, in theory, I should be adding 20% to all ‘invoices’. I’m aware that I can’t do this with Fiverr income (or any of the other freelancing platforms we operate on), and was wondering if any other UK based freelancers had experience of putting their freelance money through a LTD company? I actually dug out an invoice from last year when we made a purchase, and can see that Fiverr LTD is the one that has the relationship with the buyer… so does our income then count as ‘commission’? Does anyone know if it’s VAT Exempt or Out of Scope?
I am of course also talking to my accountant about this, but find that they’re all woefully uninformed when it comes to this modern way of working, which is why I figured I’d ask you lovely people here to see if anyone else could give some advice?
Thanks in advance.
Tom, Cubitt Audio