As a freelancer, the total VAT charged will be calculated, recorded and paid to HMRC on a quarterly basis or reclaimed from HMRC if you paid more tax (input tax) than you received (output tax).
You will be required to register for VAT if you have a taxable turnover of over £90,000. If you are under the VAT threshold of £90,000, you are able to voluntarily register for VAT. Once registered, you will be required to charge VAT on goods and services, also known as Output Tax (as outlined at the outset). However, if the VAT paid by yourself to other businesses (Input Tax) outweighs the VAT paid to you by other businesses (Output Tax), HMRC will allow you to reclaim the difference. If the Output Tax outweighs the Input Tax, you will be required to pay the difference to HMRC.
In case you are registered for VAT, please provide us with your VAT number in your profile so we can make sure to put it on your invoices.
