What is the VAT reduction lark about?

[Mirabelle-Lux]

hi, hello all and nice to meet you. I've only been camming since May but have still earned a few bob. I'm wondering if applying for VAT exempt further reduces the enormous admin fee AW charge? I'm confused as to whether I need to apply as SELF EMPLOYED with the tax office and submit evidence to AW OR do this ;

from a previous post::::::::::

Its possible to remove VAT without submitting any documents (method 2).

There is 2 ways to remove VAT from your profile.

First method:


Login to your Adultwork account, click here then enter your VAT paperwork.

Generally VAT is removed within 24hours and is no longer payable.

What can I do? can anyone explain in black and white? seeing as I can't get any help from AW and my enquiry just led me to a FAQ page 
Mirabelle xxxxxxx

[sultryshelley]

Hi Mirabelle and welcome to the forums :-)

I have been camming for 3 years, but self employed for 14 so will try and help you a little if I can, as it can be confusing!

Firstly and most importantly, you need to register as self employed. This is a legal requirement if you are working for yourself and earning through business transactions. It is not optional and is completely unrelated to vat. As you say you started camming in May, you will need to register as self employed by 5th October 2018. If you don't do this, you leave yourself open to being fined by HMRC. You will also need to file a tax return by 31st January each year. The financial year runs from 6th April - 5th April and so as you didn't start camming until May, you won't need to complete one this January, but you will next year. Even if you do not earn enough to actually be paying tax (I believe the threshold is about £11,600 before you pay anything) you still need to file a tax return to prove this. Again, if you do not do this by 31st January 2019 you will receive an automatic £100 fine - even if no tax is due.

I cannot stress enough the importance of registering and keeping accurate earnings records. It is a legal requirement for anyone working for themselves and it really isn't worth the risk not doing it.

Now, onto the vat part of your question! Vat registration is only a legal requirement if your annual turnover (not profit) is above the vat threshold of £85,000 per year. You can register voluntarily if your turnover is below that figure, but in all honesty, I wouldn't bother. I have been vat registered in the past with my previous business and it is a pain having to file vat returns every 3 months (and in my previous business it cost me more being vat registered, though that wouldn't necessarily be the case on here). If you join the dailypay group then they are vat registered and so you will not be paying vat on what you earn. That in my mind is a much easier and simpler way of not having to pay the vat.

Hope this helps a little!

Good luck x

[admin]

Hi, just a quick note, AWs admin fee of 30% is the lowest on the internet for a camming site (I believe), MyFreeCams.com, CB etc all 50%+, Streamate the biggest site in the world is 65%.

AWs fee of 30% is great compared to the rest.

[3CA]

If you're not going to join DailyPay this will tell you how to stop AdultWork charging you VAT.  

http://www.sexaccountants.co.uk/blog/pos...heir-fees/

[3CA]

Now, onto the vat part of your question! Vat registration is only a legal requirement if your annual turnover (not profit) is above the vat threshold of £85,000 per year. You can register voluntarily if your turnover is below that figure, but in all honesty, I wouldn't bother. I have been vat registered in the past with my previous business and it is a pain having to file vat returns every 3 months (and in my previous business it cost me more being vat registered, though that wouldn't necessarily be the case on here). If you join the dailypay group then they are vat registered and so you will not be paying vat on what you earn. That in my mind is a much easier and simpler way of not having to pay the vat.

1) I agree 100% with you about VAT registration. Once registered you are giving a sixth (17%) of your earnings to the government. Admittedly you'll be able to reclaim any VAT you pay but this will be minimal in relation to what you have to pay.

2) The VAT registration limit creeps up on you because it's always based on the previous 12 months income. We have a Budget next week. I'll explain the whole concept in more detail once we know the new registration limit.

[Mirabelle-Lux]

Thank you to all that have responded and given me knowledge and advice. I will continue to follow