Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers’ forum: Do separate payments prevent a VAT registration problem?

22 April 2024
Issue: 4933 / Categories: Forum & Feedback , VAT
Celeb client

One of my clients is a minor celebrity. Following her appearance on a reality TV programme she agreed a contract of £100 000 to promote a financial product on behalf of an investment company.

The investment company is apparently partially exempt for VAT purposes and has asked my client to raise monthly sales invoices of £25 000 rather than a single invoice for £100 000 because this will apparently avoid the need for my client to register for VAT and charge VAT on the fee. Is that correct?

A colleague thinks that the total contract value is the relevant issue and not how it is paid. My client’s only other source of self-employed income as a sole trader is a retainer fee of £500 per month for writing an online blog about clothes.

What do readers think?

Query 20 309  – Fashion Freda.


If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon