When dealing with your income and accounts, you may have occasionally heard mention of charging VAT. It isn't something that will apply to all Creators, but it's always worth being in the know about what to charge and when, should the time ever come.
Sam Uwins, Accountant for Social Influencers and Online Content Creators at MHA Carpenter Box, is here with the lowdown...
What is VAT?
VAT is a sales tax, which is required to be charged by businesses to their customers. VAT stands for Value Added Tax. The current rate in the UK is 20%.
When should a Creator register for VAT?
A Creator is required to register for VAT once their taxable turnover is in excess of £85,000 in a rolling 12 month period. Now, VAT is one of the most complex taxes administered by HMRC. The taxable turno