Fifth and final top tax tip from Anthony

At our open day in November 2012, we were delighted that Antony Federer from Rayner Essex accountants popped in with cake, and to give a talk entitled “Tax Tips – My top 5 for freelancers.”  Here is his fifth top tax tip.

This was a lively presentation with plenty of interaction and discussion – thank you Antony. Here is the last of his five top tips:

Register for VAT

I thought that you had to have a high income to charge VAT. But as they say, you learn something new every day!

If you use the Flat Rate Scheme, and many of your customers are UK-based, you may well save money. You charge customers VAT at the current rate (20%) and they will reclaim it. You then pay HMRC 12 to 14%. This is a special scheme for those with and income of less than £150k pa.

If this has given you food for thought, then do consult a reputable accountant to help you further. This information was correct at time of Antony’s presentation in November 2012.