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Posted Fri, 11 Nov 2022 09:58:35 GMT by Frank Biganski
I'm new to the UK this past April 2022. I'm registered and working as a sole trader, no employees or subcontractors, working for myself as a real estate property photographer in the London area. I've worked for myself for decades in the US. My accounting is simple here in the UK as well with some business deductions such as mobile phone use, website hosting, occasional software purchases, office supplies, and reasonable home office deductions (portion of utility bills, rent, etc). I will never exceed more than £85,000 annually in total gross sales but my question is, is the VAT threshold based upon my gross annual sales or is VAT based upon my profits after deductions. From what I've been reading online, it appears that VAT is charged if a business or sole trader's gross income/turnover exceeds £85,000 but I'm just trying to clarify. Thanks in advance for your replies. Frank
Posted Mon, 14 Nov 2022 11:59:19 GMT by HMRC Admin 17

The VAT threshold is based on your sales aa a business,not on your profits.

Please see the guidance below:

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

Thank you.
Posted Mon, 14 Nov 2022 12:23:42 GMT by Frank Biganski
Thank you for the link. That information answers it all, and then some. Frank

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