Welcome to WebmasterWorld Guest from 220.127.116.11
Forum Moderators: phranque
You are very lucky if you have never had to fill one of these things in :(
An accountant once told me that a lot of folks miss a lot of deductions simply because they're not adequately documented. Keep a good paper trail!
Thats good advice, there is a lot you can claim against the earnings, of course you have to declare the earnings first ;)
I would stongly recommend seeing an accountant, there are lots of them out there that can give good cheap advice. Ask around amongst friends, try and find the ones who deal a lot with self employed contractors [builders, plasterers etc], they will be very economical and easy to "talk" to.
Whatever you do play straight and don't let to many people know.
Source: Rate UK [rate.co.uk]
I could be very wrong, but from the 1st of July all online advertising bought within the UK is subject to VAT. Watch all the regionals suddenly gain a UK office for exactly this reason, if they don't there share of the UK market, second to the U.S. goes to the ones that have. This is my take from what i have read.
No one sets up a UK registered office unless they enjoy red tape and taxes or cannot avoid it. AOL and eBay who by virtue of their size were obliged to register in the EU have chosen Luxembourg which is the most benign, as far as tax laws are concerned, of the EU countries.
As an aside it is interesting to note that the the standard of living in Luxembourg is among the highest in the world, if not the highest. They also have a falling tax-to-GDP ratio and the lowest rate of VAT in the EU. Instead of trying to emulate their successful policies and learn by them the other EU countries are busy creating regulations and red tape to force Luxembourg to march to the beaurocratic drum and become as burdened by tax as they are.
Also, you will be on their records as a 'Tax Avoider' and they will inspect you more often (as you will be classed as self-employed and employed). They will be less forgiving with you, unhelpful, and basically force you into proving every income and expense.
Your business needs to register for VAT if the turnover is over £56000. This is separate from your employed income, but would be all your businesses incomes added together (if you run more than one). i.e. you cannot run 10 business with a turnover of £10000 each to avoid VAT.