Yes

The way it works is that you charge VAT on all invoices you raise, take away all the VAT you pay on invoices from others, and give the Government the difference. You (of course!) don't "charge" VAT on donations.

Effectively this enables you to pay a net-of-VAT amount for everything you buy. And if you buy more than you invoice for in a given period you can claim the VAT from the government...

Get an accountant to talk you through it (I'm not one, but I've run my own business before so have been through this a few times).

Posted By: Old Man, Dec 3, 11:49:39