This archive report was first published on 20 May 2020.
As of 2020, freelancers in the UK are required to register for Value Added Tax (VAT) if their annual turnover exceeds £85,000.
However, many freelancers make the mistake of registering for VAT and then failing to file a monthly return, which can result in significant penalties.
According to HMRC, the tax authority, freelancers who fail to file their VAT returns on time can face fines of up to £400 per return, as well as interest on any unpaid VAT.
