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Register for VAT - UK Affiliates? (RE: POF Advertising) (6)

01-15-2014 09:27 AM #1 phil2014 (AMC Alumnus)
Register for VAT - UK Affiliates? (RE: POF Advertising)

I am a UK resident - I was just about to deposit some money in my POF advertising account then saw the notice:

You will be charged VAT 20% until you enter a valid registration id on the account page.

Which I hadn't thought about atall.

Do you UK affiliates register for a VAT ID?
If you advise me to do so, should I do so now, or wait?

Any general advice along these lines much appreciated.

01-15-2014 01:46 PM #2 mykeyfocus (Member)

Im self employed from the UK and i dont have a vat id so i sometimes have to pay extra on deposits, thankfully the traffic sources i frequently use usually don't add it on. I'd say it depends how much trouble/cost it will be to set it up especially if two weeks down the line you move on from POF

01-15-2014 06:43 PM #3 caurmen (Administrator)

Remember that as soon as you're doing more than £50,000 in TURNOVER (not profit) in the UK you're required to register for VAT anyway.

Personally I'd recommend getting a limited company set up and VAT registered as soon as you can - the limited liability alone is worth it.

01-15-2014 07:20 PM #4 phil2014 (AMC Alumnus)

Thanks guys.

I know that if I register later in the year I can claim it back. I was just surprised to see the notice on POF and wondered if I'd missed some essential detail. 20% is a large bite out of any deposit!

Good tip on setting up a limited company. I'll look into that, too.

01-15-2014 07:44 PM #5 sonchai (Member)

Quote Originally Posted by caurmen View Post
Remember that as soon as you're doing more than £50,000 in TURNOVER (not profit) in the UK you're required to register for VAT anyway.

Personally I'd recommend getting a limited company set up and VAT registered as soon as you can - the limited liability alone is worth it.
Think that figure as gone up to a new threshold of £80k now. Solid advice on going limited!

01-15-2014 08:30 PM #6 maximallimit ()

Setting up a limited in UK is easy and fast. You will get many benefits by going the limited way, like Caurmen said, limited liability, also 20% tax (as a self employed one will pay 40% + on anything over £40k I think). Your accountant (if you dont have one I highly recommend getting a good one) can register you for VAT and you will have to do the VAT every three months (your accountant will do it for you).

A lot of traffic sources are based in EU and they need your VAT number, or charge you VAT if you dont have one.

Hope that helps

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