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We are not amused

21 August 2012
Issue: 4367 / Categories: Forum & Feedback , VAT
An entertainer is a British citizen and is also a national of another Commonwealth country. Since September 2009, he has been a US resident, but has substantial earnings in the UK from appearances here

We recently acquired a new client an entertainer who is resident for tax in the USA and who is also a citizen of Britain and another Commonwealth country. He was resident in the UK until 6 September 2009.

Our client has to submit UK tax returns declaring his earnings as a foreign entertainer from his sole trade in the UK arising from tours and one-off gigs in this country.# His UK turnover fluctuates each tax year depending on bookings and worldwide engagements and in recent years has been as follows:

2009/10: £65 000
2010/11: £160 000
2011/12: £10 000
2012/13 (so far): £55 000

It has just occurred to me that there may be a VAT problem. Does our client need to register for UK VAT and charge VAT on his sales invoices? Or is the VAT handled by the customer in the UK?

There...

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