If you use a freelancer to carry out work on your behalf, you’ll record this in Crunch as an expense under the category of ‘Subcontractor costs’. You’d record the expense for the full amount they charged you, making sure the VAT type is set to ‘Standard’ when entering your description and amount.
While there can be some benefits to being VAT registered, unfortunately, one of the drawbacks is that it does make your services more expensive for people that aren’t VAT registered themselves.
If you’d like to know a bit more about how VAT works, we’ve got a great article in our knowledge centre.
All the best,