Exemption from taxes

No tax exemption, that would be nice You can be exempted from quarterly vAT declarations. Be careful, though, because you can no longer charge vAT to customers, but you also can't deduct vAT on your purchases. So it's not necessarily advantageous.I'm following too! I've also turned my hobby into an official business For now, I'm still submitting vAT declarations, but it would be nice not to have to do that anymore... Just to keep the administrative hassle to a minimum.It is indeed true that you can apply for a vAT exemption. This is not an obligation or something that will happen automatically, but if your turnover remains below £25,000 per year, you can apply for this exemption.As mentioned above, this does indeed have the advantage that you no longer have to submit a vAT declaration quarterly. Submitting a vAT declaration via Dexxter is not a lot of work, but if you no longer have to submit vAT declarations, that's a few less deadlines in your diary.Another (possible) advantage is that you no longer have to charge vAT on your turnover. If you have a lot of private persons as customers, you will therefore become slightly cheaper for these customers. This is because vAT is something that these private persons simply have to pay. (If your customer is a business, it makes little difference. That customer-entrepreneur can still recover the vAT you would charge via their vAT declaration).For example: if, as a subject to VAT entrepreneur, you receive an invoice from €100 (excluding VAT) with 21% VAT, your cost price will actually only be €100. You can still recover the €21 in VAT via your vAT declaration.

If, as a non-VAT-registered entrepreneur, you receive an invoice from €100 (excluding vAT) with 21% vAT, your cost price will actually be €121. You cannot recover the €21 vAT via your vAT declaration, but you can enter €121 as a business expense in your accounts.