How to categorize income not counting toward VAT Threshold in self assessment

Hello, I am a non-VAT Registered sole trader and amongst other things, I provide B2B services outside the UK that from what I understand are out of the scope of UK VAT, which means they don't count for my VAT threshold (£85000). When it comes to my self-assessment, how do I separate these to really not be accounted towards the £85000 threshold? These are still taxable income that I declare but they shouldn't count towards the threshold. Is there a specific field that I should add these to? Will HMRC be able to give me this information if I called them or could you help me with this information over here? I haven't reached the threshold for the current fiscal year yet, but I'd like to be informed if this issue arises as I tend to do my self-assessment quite early. Many thanks!

Hi k Galas,
In your self assessment tax return, the VAT is included in the declared gross profits. 
In SA103F the VAT is declared as an expenses, so that it can be deducted from the gross profit, along with the other expenses.
Thank you.

Hello and thanks a lot for the response. In order to be 100% clear. Say I have £1000 income from a B2B payment. Will this £1000 count against the £85000 threshold? So say my return had a turnover of £30000, would the VAT threshold turnover be £29000 (but the taxable amount be still £30000)? How can I work it out? Many thanks!

Hi,

If you make general rule supplies overseas then these would be classed as outside the scope of VAT and would not go towards your turnover for VAT registration purposes and so you could ignore the £1000 supply as regards your turnover. You can see guidance here:

The place of supply rules for services

Working out whether you need to register

Thank you.

Thank you so much for the response. So, where do I enter my total EU sales on my self-assessment tax return? As if I include them with my sole trade turnover then it will push my turnover over the VAT threshold prompting HMRC to look into my turnover for VAT registration purposes. Is there a separate box the enter my EU Sales? Thanks for your help, it's highly appreciated.

Hi,

In your Self Assessment Tax Return, the UK VAT is included in the declared gross profits. In SA103F the UK VAT is declared as an expenses, so that it can be deducted from the gross profit, along with the other expenses.

If you make General Rule Supplies overseas then these would be classed as Outside The Scope of UK VAT and would not go towards your turnover for VAT registration purposes and so you could ignore the £1000 supply as regards your turnover.

Please see the guidance below:

Place of supply of services (VAT Notice 741A)

Who should register for VAT (VAT Notice 700/1)

Thank you.

So in the following situation do I need to be VAT registered? I earn over 100k from a salaried role. Completely separately I also do some ad hoc work which totals below the VAT threshold. does my salary contribute to the VAT threshold?

Hi. If you are an employee on a salary then this doesn't count towards the VAT threshold . The VAT threshold to be considered in your case is your turnover as a sole trader . Thank you .