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VAT

VAT (“Value Added Tax”) is a tax added on most goods and services in the UK.

Right now the VAT rate for most goods and services is 20%.

If you are self-employed, you don’t need to register for VAT unless you earn over £85,000.

Under this amount it’s entirely optional.

Reasons to register for VAT:

  • if you earn over £85,000 from self-employment (unless you provide VAT exempt services, like training)
  • if you want to claim back VAT that you’ve paid on your purchases (for example, VAT on the laptop you use for work)

You can register for VAT on HMRC’s website.

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