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***not exempt from VAT, but charged at 0%. There is a difference, apparently***
I was running a freelance press agency on Merseyside when VAT came in, Harry. I think it was around 1972. As I remember, pictures we sold to newspapers, magazines and TV had to have VAT added to the bill. Words, on the other hand, were zero rated, which meant that we were paid VAT on these, but it had to be immediately returned.
Being VAT registered, though, (even zero rated) meant that we could claim back the VAT charged on business stuff -- equipment, phones, fuel for travel, etc, etc.
Maybe the system's way different now, but at the time it seemed pointless red tape and was one heck of a lot of messing. Even our local VAT man, appointed by the government to visit small businesses and explain the ins and outs, thought it was all very silly. I remember his name well. It was Charles Chaplin. I guess he had to have a sense of humour.
Cheers. Neil
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