Ltd company billing other UK companies for Offshore North Sea work?
Assuming your Ltd company is UK based.
If you work in the UK you charge VAT on services and claim VAT back on expenses incurred in the UK.
In general terms (there are caveats)…
If you invoice another EU company you do not charge VAT.
If you invoice an overseas company out-with the EU you do not charge VAT.
If you work in the UK, and overseas, it might be worth being VAT registered, I’d consult an accountant on that one.
Plus, if you bill all your work through your company and exceed the VAT threshold, you may be required by law to register for VAT anyway.
If you deem it advantageous you can register voluntarily for any lesser turnover (as far as I remember).
There is a law in Britain, which makes it obligatory to register for VAT if your business has made more than £70,000 of the VAT taxable turnover for the previous year. This figure is called VAT registration threshold.
To be clear, VAT-taxable turnover is a sum of all the goods you’ve sold and services you’ve provided that belong to the group of VAT-taxable.
In the UK the government usually changes the VAT threshold once a year. The changes are announced in the Budget. That’s why you have to check your turnover regularly and see if it doesn’t outstrip the VAT threshold 2010. And if it does – you have to register for VAT.
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