Forum Moderators: martinibuster
Might be useful for people wondering.
I think in words of one syllable that means google money is part of your vattable turnover, but goes down as 0 rated on the forms, so you do not pay VAT to customs & excise.
It is just me who thinks thay could have made that clearer. This was my second attempt to get an answer.
[edited by: trillianjedi at 11:17 am (utc) on July 14, 2006]
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[1][edit reason] No email quotes, please. Why [webmasterworld.com] [/edit] [/edit][/1]
you do not pay VAT to customs & excise
Always check with an accountant or your local VAT office.
The latter is a local phone call away.
google money is part of your vatable turnover
Currently I believe if your turnover is £61,000 in any rolling 12 month period you have to register for VAT. This may be 100% made up of adsense in which case there will be nothing to pay but you will still have to register. This will allow you to claim back VAT though.
Obviously if in doubt always check with an accountant or your local VAT office.
It's similar to registering for VAT except you prove that your VAT-able income is less than the 60k per year..
It is also very easy to de-register at anytime as long as your vatable turnover is less than the lower threshold (I think currently around £56K)
If you are registered or considering registering you may benefit from the flat rate scheme. This is where you pay a percentage of your turnover regardless of what your income is or what you spend.
If you have lots of small sales and purchases it maybe advantageous to go for the flat rate scheme. You may need to clarify exactly what your business is though as last time I checked I could not find a classification for my business. In this case they seem to put you on a generic rate.
