I posted this question yesterday regarding how much to charge a client - and by which method (hourly or one-off payment) that I have previously worked with on a non-freelance basis, but I now want to know whether or not I should charge VAT?
I have little knowledge of how VAT works and I understand that there a few factors to be taken into account. First of all, the work I will be doing is office-based, however I plan on working from a satellite office in order to complete the task.
I don't know where to start when trying to work out if/how/when to charge VAT, so thought that I would put my question out there to those who do.
My concerns are:
- I am not VAT registered and don't know if I should be if I'm not going to charge VAT;
- Can VAT only be applied to certain types of work? (Such as labour, skilled tasks (such as software development), etc.)
Any help with this topic would be wonderful.