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UK Hosting Reseller Accounts

ijeffers

Active member
#1
Hey all

Not 100% sure where is best to ask this question (as in site, more then anything else) but since I've started doing a few websites for a few friends I'm starting to wonder if rather then getting each one to set up their own hosting account whether it's worth me getting a reseller account and charging them which would give slightly more control to me I guess.

There are 2 reasons why I haven't done this so far, 1 is that if for whatever reason we fall out, they can toddle off with their current hosting account and make merry with someone else with no ties to me and secondly I'm not sure if there are any other implications which would then come into play such as accounting and tax.

Anyone based in the UK who's a reseller, would tax them come in to play if I started charging people for hosting? My gut feeling is yes which will mean I'll just stick to my current arrangements (although might try and get a little commisson from somewhere instead).
 

Shamil

Well-known member
#2
Oh most certainly, if your clients are in the EU. You'd probably have to charge UK VAT rates. You might want to become VAT registered, though, I'm still awaiting the docs from the HMRC.

Tax can be an ass.
 

Ingenious

Well-known member
#3
Yes, if you are providing a service and charging money, then you would have to declare the profits for tax purposes. Usually you would keep some kind of basic accounts and enter the brief info (profits from self employment) on your self assessment. I'm both full time employed, and also self employed (earning money through some websites) so I just enter both sets of information on my self assessment each year and the very kind computer at HMRC sends me a bill :) If you take any kind of money for services and do not tell the tax man, you are evading tax, which is illegal, so it's generally not a good idea to post about it in forums.

You do NOT need to register for VAT unless your turnover goes over a certain amount (is it about £50k pa these days?). If you don't register for VAT, you do not add VAT to your invoices, but neither can you claim the VAT back that you pay on any purchases. However, you won't have to do a VAT return either.