VAT registration is mandatory for businesses with, or will predict to have, earnings over £85,000. Find out more about becoming VAT registered, how we can help and how to ensure your compliant when submitting your VAT returns.
VAT, or value-added tax is a tax levied on goods and services
When your business starts to generate income you will need to think about VAT. Registering for VAT is a requirement for a UK business as soon as income passes £85,000 in the previous 12 months, or income for the next 12 months will exceed £85,000.
Once you are registered for VAT, you must charge VAT on top of any goods or services you charge your customer. This 'VAT element', minus any VAT you have been charged by your suppliers, is declared to HMRC and a payment, or refund is made.
In some circumstances, VAT registration is actually beneficial to your business and could earn you extra money. However, you should take additional advice on whether this would be the case.
Our expert accounting team will discuss VAT with you and ensure it's right for your business. If applicable, we'll then prepare the application forms and submit them to HMRC electronically.
Once submtted, HMRC will start checking and processing the registration forms and will, in most cases, issue a VAT number and certificate within 10 working days.
Once the VAT number is received, you should start charging VAT on the goods and services you sell and start recording the activity on a MTD-compliant bookkeeping app.
Finally, to calculate VAT payable, you offset the VAT you have paid on goods and services against any VAT you have charged to your customers and the difference is paid to HMRC.
We can provide a VAT number for your new company
Before registration, you get access to an accountancy consultation that will allow you to discuss your VAT options.
If VAT registration is applicable, we'll prepare and submit your VAT registration application to HMRC.
Normally, within 10 working days, HMRC will process the application and we'll send your VAT number and certificate to you.
*free of charge on the professional and all-inclusive package
Questions about our VAT registration service
No, unless your income for the previous 12 months exceeds £85,000, or you expect your income to exceed this amount in the next 30 days, you do not need to be VAT registered.
When you register for VAT, you can opt to apply different VAT schemes when you calculate your VAT return. Schemes include, standard invoice, cash accounting, standard flat rate or cash accounting flat rate, together with other sector specific ways. The best scheme for your company will be dependent on your sector and your level of income.
You do not need to exceed the VAT threshold limits to register for VAT. There are circumstances where it might be more beneficial to register for VAT, for example where you might have large outgoings that are vatable.
In most cases, it will take around 10 working days to receive your VAT number and certificate of registration once HMRC receives your electronic registration form. It can take longer in some circumstances, if they need further information.
All formation packages include a free 30-minute accountancy consultation with our expert team. They'll be able to guide you through your options and provide advice on your specific circumstances.
We can advise on how to operate your VAT and provide lots of information to you. If you need additional help in preparing and submitting your VAT, our accounting partner, Clever Accounts is the perfect partner to provide this help for you. Check out more information here
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