As a freelancer, it can be difficult to know what you can claim as a business expense and what is considered a private cost. When it comes to working from home, this can be especially tricky and hard to navigate.
As a UK business, you must register for paying VAT if your ‘VAT taxable turnover’ is more than £85,000. For many small businesses, that sounds like a large sum. In fact, if you’re in a sales-based business, as many are, it’s really not so large in practice.
VAT Returns are no one’s favourite thing. Aside from the endless number of receipts you have to sort through from the last six years, once you’ve input all the data in your own cloud accounting solution you then have to go to the HMRC portal and re-enter the information there to submit your return.