VAT Registered company: How to charge VAT?

[arcotek-ltd]

Hi,

I am a fully registered VAT limited company in the UK.

1. Despite the dollar sign, am I paid in USD or GBP?

2. Should my rate be in GBP or USD?

3. How do I charge clients VAT? Should it be incuded in my rate?

Thanks

[nkocendova]

Hi Adrian,

Transactions on Upwork are always in USD, although if you select direct to local bank as your disbursement method then the funds will be automatically converted to your local currency.

Please note that VAT is not being charged on your earnings from your clients. You may need to consult your tax advisor whether to charge your client VAT for your services. Upwork will only charge VAT on the electronically supplied services we provide to you, which include the Upwork service fee, purchase of additional Connects if applicable and Freelancer Plus membership fee if applicable.

Note that you can find a separate invoice for all of the abovementioned charges in your Transaction History report.

[arcotek-ltd]

@Thanks @Nina K,

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@Nina K wrote:

You may need to consult your tax advisor whether to charge your client VAT for your services.

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I read that in your FAQ. I don't need to consult a tax advisor as I already know I have to charge VAT as I am VAT registered.

So what do other VAT registered businesses do? I'm assuming I add the 20% VAT to the hourly rate and then send the client a VAT invoice (for their records) so they can claim back the VAT. Otherwise, not only would Upwork take their 20% cut, HMRC would take a futher 20%.

 I guess I need to find a different freelance site that is geared to UK or atleast EU business practices.

Thanks

[nkocendova]

Adrian,

To see what steps other EU freelancers have taken, you can review the threads here and here which may provide further information that you'll find useful.

[jo-wilkinson]

Hi Adrian/Nina

I was wondering if you found the answer to your question as I have the same one?

It is not covered in the help link supplied and the other thread is 85 pages and seems to be on a different topic. Many thanks.

[JoanneP]

Hi Jo,

You might want to check out the discussion of other freelancers regarding tax returns who are also based in the UK on this thread. Hope this helps. Thanks!