@ctrlaltstartup: VAT? I still don’t understand its existence but, here’s how it works. It’s not your money lol although it looks good in the account. Learn this early (trust me) and protect your cashflow. So Boring, sorry 🥴 You may think “I am no where near £90,000” but this is turnover, not your profit. A lot of small businesses in the U.K. get to this level within a few years. VAT explained simply (I Hope lol): In the UK, once your turnover reaches £90,000 in any 12-month period, you must register for VAT. That means:
• Add 20% to most invoices
• Collect it for HMRC
• Pay it quarterly If you are doing business outside of the UK you do not charge VAT, the “reverse-charge” procedure is allocated. E.g. if you do some marketing for a business in Paris - no VAT just make sure you write (Reverse-Charge) on your invoice. Some industries in (UK to UK) business also apply Domestic Reverse Charge, I will explain more on this soon. An accountant can help you with this. Next up; should you get an accountant? #entreprenuer #money #business #smallbizz #marketingtips

ctrlaltstartup

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Friday 13 March 2026 06:14:22 GMT