You must register for VAT with HM Revenue and Customs (HMRC) if your VAT taxable turnover goes over the current registration threshold (see footnote) in a rolling 12-month period. This is not a fixed period like the tax year or the calendar year - it could be any period, for example the start of June to the end of May.
VAT taxable turnover is the total value of everything you sell that is not exempt from VAT.
It isn’t easy deciding what should be included with money possibly coming from individuals and businesses as well as from different countries. In an attempt to simplify the rules, I have listed what should be included and what shouldn’t be included. Like all advice it can’t relate 100% to everyone so it’s worth checking your particular situation with a qualified advisor.
Please note that these classifications only relate to income from live webcamming. If you sell photos, recorded movies and pictures the grouping is slightly different.
When calculating VAT taxable turnover, you should
Include
Income from individuals in the UK
Income from businesses in the UK
Income from individuals in the EU
Income from businesses in the EU
Income from individuals outside the UK and the EU
But not include
Income from businesses outside the UK and EU
Notes
- The current registration limit is £85,000 and will be maintained until at least 31 March 2020.
- The last Budget proposed that this limit should continue until 31 March 2022 but this hasn't been made law yet.