Threshold
Is it worth crossing the VAT line?
Expenses is a vague guess at what you spend a year on things that carry VAT — gear, computers, software, hosting, VAT-registered second shooters. The figure you actually pay, VAT included.
Your post-VAT income would be about £85,833 — £4,167 less than staying under.
Registered, roughly £16,667 of that goes to HMRC and about £2,500 comes back on expenses. Earning more here leaves you worse off — you'd need to bill about £105,000 (another £5,000) just to break even.
This is your income after VAT — not a final take-home figure. You'll still pay income tax and National Insurance on it as normal.
At your expenses, your post-VAT income
A rough guide, not tax advice. It isolates the VAT effect only (no income tax or NI), assumes the standard 20% scheme with prices absorbed, and can't know your exact figures, dates or circumstances. Always check with an accountant before making a decision. Your numbers are kept on this device.