UK ltd company and VAT registration if main contract is in USA

Mark Fishlock

New Member
Feb 19, 2025
1
0
Thank you in anticipation,
We are a (deliberatly) small company that sells consultancy and training services. We have two key customers. One is UK based the other in USA. We currently have a total income of £85K, so VAT is not a problem.

Our USA client wants to double our order (from £30k to £65k) and this will mean our income will go somewhat over the £90K limit, BUT the USA work is exempt from and UK VAT.
The UK based work will remain the same (@£55k).
Reading the HMRC VAT guidance it says that :
'Taxable turnover is the total value of everything you sell that is not VAT exempt or ‘out of scope’ goods and services.'

I assume (hope) that we can discount the USA work from the calculated total income so we stay below the VAT threashold? Your thoughts would be very welcome.
 

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