VAT for Wedding Photographers: Why Future Bookings Can Cost You More Than You Think
- John Gates
- 1 day ago
- 4 min read
If you're a wedding photographer in the UK, you've probably heard of VAT – but do you really understand how it affects your business, your pricing, and your long-term income?
For many self-employed photographers, VAT registration sneaks up on you, especially if you’re booking weddings one, two, or even three years in advance. What seems like a “nice problem to have” (i.e., being fully booked) can turn into a serious financial headache if you're not proactively managing your income in relation to the VAT registration threshold.
In this blog, we’ll cover:
What VAT is and when you need to register
Why wedding photographers are especially vulnerable
A worked example showing how VAT registration can reduce your income if you’ve already taken bookings
How to avoid getting caught out
What is VAT?
VAT (Value Added Tax) is a government tax on most goods and services in the UK. If you're VAT registered, you must add VAT (usually 20%) to your invoices, collect it from your clients, and then pay it to HMRC.
When Do You Need to Register for VAT?
You must register for VAT if:
Your taxable turnover exceeds £90,000 in a rolling 12-month period (as of 2025).
Or, you expect to exceed that threshold in the next 30 days alone.
This includes all income from your photography services, even if the work hasn’t been delivered yet — such as deposits for future weddings.
Why This Matters for Wedding Photographers
Wedding photographers are in a unique position because they:
Take bookings years in advance
Accept deposits before the service is delivered
Often operate as sole traders or small limited companies
Rarely work with VAT-registered clients (so can’t pass on the VAT easily)
If you become VAT registered after taking deposits, but before you deliver the service, you may be required to add VAT to the remaining balance.
This creates a dilemma:
Option 1: Pass VAT on to the client
But they weren’t expecting a 20% increase — which could lead to complaints or cancellations.
Option 2: Absorb the VAT yourself
That means you lose 1/6th of your fee — a significant cut to your profit.
Worked Example: The Real Cost of VAT on Future Bookings
Let’s walk through a hypothetical scenario.
You charge £3,000 per wedding.
You take a £500 deposit to secure the booking in 2024.
The wedding takes place in 2026.
In 2025, you become VAT registered.
Under HMRC rules, VAT is due at the time of supply — so even though the deposit was non-VATable when taken, the £2,500 balance falls after you became VAT registered. That balance now requires 20% VAT.
If you pass the VAT on to the client:
The client pays: £2,500 + 20% VAT = £3,000 total + £600 VAT = £3,600
But the client originally agreed to pay £3,000 total, so they may push back.
If you absorb the VAT yourself:
You still only charge £3,000 in total, but now 1/6th of that is VAT:
£3,000 ÷ 6 = £500 paid to HMRC
Your income becomes £2,500
That’s £500 less profit on the same job
So in real terms, you’ve lost 16.67% of your income for this wedding.
Multiply that across 20–30 forward bookings, and it could cost you £10,000 to £15,000 or more — just because you didn’t plan ahead for VAT.
How Can Photographers Protect Themselves?
Here are some proactive steps you can take to manage your VAT risk:
✅ 1. Track Your Turnover Monthly
Use a spreadsheet or accounting software to track your 12-month rolling income. Don’t just wait for your year-end accounts.
✅ 2. Build VAT Clauses into Your Contracts
Include a clause that states:
“If the photographer becomes VAT registered before the wedding date, VAT will be added to the balance due.”
This gives you legal footing to pass VAT on to your clients — and avoids awkward conversations later.
✅ 3. Review Your Booking Calendar Regularly
If you’re close to the VAT threshold, consider limiting new bookings, spacing them out, or delaying deposits into the next VAT period to stay under.
✅ 4. Consider Pricing Strategically
If you’re nearing VAT registration, consider increasing your fees so you’re not undercutting yourself once VAT kicks in.
✅ 5. Speak to an Accountant Early
Don’t wait until you’ve passed the threshold. Speak to an accountant who understands creatives — like Duo Accountants — and make a plan in advance.
Final Thoughts
VAT registration isn’t always bad — it can mean your business is growing. But for wedding photographers, the timing can be financially painful if you’re not prepared.
Taking deposits years in advance is great for your calendar, but not great for VAT planning. If you're not careful, you could lose thousands of pounds in income, just by crossing the VAT threshold at the wrong time.
Need Help Navigating VAT?
At Duo Accountants, we specialise in working with photographers, creatives and wedding professionals. We’ll help you:
Track your VAT risk
Future-proof your contracts
Structure your business to protect your income
Book a free chat with us today and stay in control of your money — before VAT catches you out.
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