VAT MORE QUESTIONS (SURPRISE)

[xKatieBabyx]

Are you registered self employed? If so you will have a unique tax code reference (UTR). you can find this on the online portal where you do your returns, and on any docs you have from HMRC, it's a 10 digit number. Put this number, proof of ID, and proof of your business (any hmrc docs) in on this page http://www.adultwork.com/VATDetails.asp

Once accepted (within 24 hours) there won't be any extra 6% VAT fee on your admin charge to pay. You still pay VAT on everything you buy from them though like featuring etc x

[FatManFuck]

Yes I am registered as self employed... I have a Limited Company, and yes that is VAT registered...

However I am guessing if I go that route then I need to add VAT to my prices and pay VAT through the company, even though we're not hitting the required amount to need to be VAT registered :/ God this is confusing, time to get a proper job and work at McDonalds I think...

I also run a group... so wondering how this effects all the girls working through us as well :/ Brain Freeze !

[Tara25]

i heard those on daily pay dont need t pay the 20% is this right and if so ..why?!

[xKatieBabyx]

Yes laura, have a look at the other thread on it.

FatMan do you have an accountant? Ask them to go through the reverse charge provisions with you. As far as I am aware if you're VAT registered yes you'll have to account for this yourself through your VAT returns, however there will be nothing to pay as you are not charging anybody anything.

https://www.gov.uk/government/publicatio...d-services

http://www.hmrc.gov.uk/manuals/vatpossma...s14100.htm


For your group you'll have to put your details in on their behalf as you do now.

[Angel]

Are the other sites implementing these charges as well ?Just out of curiosity as I solely operate on AW.

[xKatieBabyx]

The changes are to do with the updated EU Sale of Digital Goods Act, so only EU sites are affected I believe. If you're talking about camsites specifically I have contacted the ones I work on and the ones in the USA have stated they are not making any changes.

[Angel]

The changes are to do with the updated EU Sale of Digital Goods Act, so only EU sites are affected I believe. If you're talking about camsites specifically I have contacted the ones I work on and the ones in the USA have stated they are not making any changes.

Ah I see I much appreciate your reply Katie , I was strictly wondering as to how this mechanism works as yet again whether we are talking U.S based sites are they subject of current e digital law changes as obviously there are plenty service providers from the UK and the rest of Europe so was curious as to how this affects them.
Based on no changes there that being the case clients may well contemplate accessing the U.S sites ...
One main concern is not the 6 percent but the fact that they are charging the clients 20 percent on e money not e services to my understanding say if you were to walk in Thomas Cook today and exchanged pounds to euros at the advertised rate with disregard to how you intend to spend the currency whether is an e service or e product as they refer to how can they ask /justify the 20 pence increase per credit that is e money not an e service.
I far grudge the principle behind the clients having to take the hit on top of vat increase.

[FatManFuck]

Didn't these changes come in to effect in January... wonder why it took 10 months for them to be implemented :/

And yes I have an accountancy firm that represent us Katie... however I am wondering if it's worth the effort to do the VAT ourselves, or just leave it so AW take care of this... :/ Guess it's a case of weighing up the pros and cons

[xKatieBabyx]

You have to do it yourself. Reverse charge provision basically means AW shift the tax responsibility from them to you/ us. Barely anyone knows or understands the new directives, they haven't been widely publicised and HMRC have made a pig's ear of helping businesses to understand how it will affect them. Looks like AW have been fighting the need to comply since Jan and have now found out they must.

Angel it's all to do with transparency, something to do with having to see exactly what tax has been added where.

[Pixie]

AW are still responsible under the VAT laws to charge VAT on our digital services and collect the amount. So you wouldn't have to add VAT onto your prices or pay that VAT to hmrc. There isn't a way put of that at the moment it seems.

The reason why dailypay members are exempt from the VAT on the Admin fee is because the owner of the group has filled out the form that Katie linked to earlier. So all the members credits are paid to dailypay who then withdraw the credits and dailypay pays the aw Admin fee.

I hope that makes sense.

X