Electric Trainer

How HMRC chases tax

I'm often asked by worried freelance trainees if they're ever likely to be audited by the taxman (or woman). I haven't a clue, of course.  But this article in the Telegraph is quite interesting. The mega-computer certainly sounds scary.

Are you next on the taxman's list >> 

VAT help for digital services

Time to come clean: the way VAT works across borders is one of those things I can't quite get my head around.

I understand how VAT is irrelevant if you are working outside the EU, but how does VAT work when you sell to someone in another EU country? The single market is supposed to simplify things, but here it seems to make things more complicated.

Of course, as a trainer I should know everything. But whenever anyone asks about VAT across borders I look at the ceiling while pointing here.

But look! A glimmer of light for people who sell digital services (like apps and e-books) around Europe! HMRC have set up an online VAT Mini One Stop Shop.  The aim is to stop you having to register for VAT in every country where someone buys something from you.

Read a short outline at Gov.uk >>>

Feeling strong? Here's the full Monty at HMRC.gov.uk >>>

Freelancing through an agency - rule changes

We've met quite a few media freelances recently who operate through an agency to get work and receive payment.

As the rules about employment status and taxation for agency workers changed this April (2014) I thought it might be useful to link to HMRC's guidance, neatly encapsulated (!) in 6 pages of PDF.

It's difficult to reduce this sort of thing to a one-liner, but in short if your work is unsupervised or you can send someone else along in your place you might be able to be self-employed and still get work through an agency. Otherwise it's more likely that the agency will have to treat you as an employee, and take off tax and national insurance before they pay you.