Understanding VAT on SlickPay and Slick

VAT can feel confusing when it's applied to multiple areas of your business. Let's clear up how VAT works with SlickPay and Slick, so you can confidently track it for your accountant.

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When a client pays you through SlickPay, you're charged a transaction fee. VAT is charged on that fee, not on the payment your client made. You receive the payment less the fee and the VAT on it.

VAT on what you sell is a separate matter and depends on your own VAT position, not on how the client paid.

Transaction fees are calculated on the total transaction value, including any VAT within your price. That's standard across card processing, because the provider processes a payment and doesn't know how your pricing breaks down. It doesn't mean VAT has been charged twice.

VAT at the standard rate is charged on:

Pass these to your accountant with your other business costs.

If you're VAT registered and on standard VAT accounting, VAT on business costs is normally input VAT, which your accountant offsets against the VAT you owe. You'll need the VAT invoice to support it.

If you're on the Flat Rate Scheme, you generally can't reclaim VAT on costs like these, as the scheme works differently. Check with your accountant which applies to you.

VAT is still charged on your Slick fees, and you can't reclaim it, so treat it as part of the cost. The full amount including VAT is normally a business expense, and your accountant will handle how that's treated.

You must register for VAT once your turnover passes the registration threshold. Below it, registration is optional and whether it helps depends on your business. Your accountant can advise.

Always speak to a qualified accountant. Slick isn't an accountancy or tax adviser and we can't give tax advice. Our team can point you in the right direction, but like you, we're not chartered accountants, so go by your accountant's final recommendation.