How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4203
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

Regarding being self-employed and having a job. I'm currently

Customer Question

Regarding being self-employed and having a job.
I'm currently self-employed and do website design for a company. Lets say I'm earning £10,000 a year.
I'm looking to start a new business (self-employed) where 100% of the profits will be re-invested in the company. This means I will be building the business up turnover wise.
The current VAT threshold is £82,000 a year. My 10,000 a year profit from website designing is deducted from that.
If the company that I do website design for employs me properly, will that £10,000 a year (from an employed job then) still be deducted from the VAT threshold also?
IE; When self-employed but ALSO having a job, is the job earnings taking from the VAT amount a year for self-employed people or is it classed as separate.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
VAT is a turnover tax; if the company's turnover reaches or approaches 82K in a year the company must register and account for VAT. Your wages from the company do not come into the VAT computation at all. If you are a director of the company you are an employee of the company and must be remunerated under PAYE arrangements. As far as VAT and wages are concerned never the twain shall meet.
I fear that you are becoming confused. Earnings have nothing to do with VAT.
I do hope that I have been able to shed some light on your company's VAT position.
Customer: replied 2 years ago.

I understand what you mean.

So job earnings, are not classed as turnover.

Even when self-employed whilst also having a job.

Expert:  bigduckontax replied 2 years ago.
If a company is instructed to do a job, raises an invoice then the payment of that invoice would form part of the turnover.
If an employee is paid by the company that is not part of the turnover; it forms part of the cost of sales.
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Can you ask support to cancel that bad rating I gave? It was supposed to be Excellent Service

Expert:  bigduckontax replied 2 years ago.
It has just come through as an email to me!
I am pretty sure that you can do that yourself by rating me again. I wait with bated breath!
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.