As with all important decisions, you need to choose the path you think is the right one. Our job here is to present the facts clearly so that you have the best possible chance of making the best choice for you and your business. Depending on your business, you may need to fill out an additional form – use gov.uk`s registration page to find out which one to apply. If you take over a business, check the VAT registration status as soon as possible. You may need to register for VAT, even if it is already registered. HMRC describes Making Tax Digital (MTD) as “an important part of the government`s plans to make it easier for individuals and businesses to get taxes and track their affairs – meaning the end of annual tax returns for millions of people.” VAT registration and the inclusion of this tax when buying and selling is an important step in the growth of many businesses. Businesses subject to VAT can claim VAT on goods and services they have purchased for their business. This reduces your company`s taxable income in the EU and saves you money. For the sake of simplicity, some companies make this annual VAT payment on the same or about the same date as they declare their corporate income tax. One of the most common reasons for voluntarily registering for VAT (i.e. before the transaction creates a registration obligation) is the refund of VAT acquisition costs. For example, a new café can spend large sums of money to create a café and buy equipment. The VAT element of these costs can be recovered and return this cash flow to the business earlier than waiting for the turnover to exceed £85,000.

This is a good thing because we know that our VAT advisory service can provide you with the same unbiased advice no matter where your business is based in the UK. Some companies also have to register when selling certain goods or services and in certain places or markets, e.B. in Northern Ireland and the EU. Learn more about when you need to register with gov.uk. If your annual turnover is below the threshold, you can always voluntarily register for VAT. The decision is entirely up to you. There is a lot of information to consider. For a small business, this can be a big burden to manage on your own, but there are solutions to help you (like Quaderno, our tax automation software). Take a look at What you need to know about VAT if you have customers in Europe to get a clear breakdown of how to comply with EU VAT once you`re all registered.

VAT is a UK tax on the sale of goods and services paid to Her Majesty`s Finance and Customs Office. If your business in the UK earns more than £70,000 ($111,323.16 from October 2010) in 12 months or less with goods or services that are not VAT-free, you will need to register your business with HMRC so that VAT can be paid. To facilitate registration, hmrc has added online VAT registration as a service to its website. If your VAT registration has been cancelled and you wish to re-register, you can do so via the eRegistration function of Revenue. You have determined that you will exceed the threshold on July 1, 2021, which means that you must register for VAT by July 30, 2021 and your effective date is July 1, 2021. There are a number of different categories of VAT that you should look into before signing up for VAT online. Here are some VAT rules you should consider. Being subject to VAT has certain disadvantages.

For example, you must send your VAT returns to HMRC every quarter. While we can`t say what`s best for your business, we can invite you to talk to us so we can learn more about where you are and where you want to go. Once you have registered, HMRC will send you a VAT registration certificate confirming: Once you have registered for VAT, you will need to file tax returns and payments electronically. For more information on how to pay and file your tax return online, see The Mandatory Electronic Reporting section. That is the whole application process. You will receive your professional VAT number electronically or by post. How does VAT affect your business? Will this change after the government`s recent Covid-19 VAT announcements? Let us know in the comments. It is important to note that you do not have to start your VAT accounting from the date you receive your VAT number, but from the date you had to register for VAT because you reached the £85,000 threshold or the time you voluntarily chose to register.

Your VAT registration certificate should arrive within 30 business days, but it may take longer. Don`t forget to check your account online as it`s usually sent there unless an agent is doing things for you or you`ve signed up in the mail. On the other hand, VAT registration means more paperwork, and sometimes you pay more to HMRC (if you collect more VAT from customers than you pay). It`s best to look at the specifics of your business when deciding whether or not to sign up for VAT. If you sell digital products to EU consumers, you may need to register for VAT and collect VAT on all your sales in the EU. The flat-rate VAT scheme is one of the best known and most widely used VAT schemes. This is especially relevant for companies that spend a small amount on goods and raw materials, so it is more popular among service providers. You can transfer a VAT registration from one company to another or if the status of your company changes (for example. B from a partnership to a sole proprietorship).

Instead, you declare and pay each year with this agreement, which is only available to companies with an annual turnover of less than £1.35 million. On the other hand, VAT registration can add a touch of authority and consistency to your business. This applies whether you voluntarily decide to register or registration is mandatory (as your annual turnover exceeds the VAT threshold). The thresholds do not apply to businesses located outside the UK. You will need to register as soon as you deliver goods and services to the UK or if you plan to do so within the next 30 days. If you choose to register, the effective date is not earlier than the beginning of the tax period in which you are submitting the application. Simon is an award-winning journalist who writes about business and personal finance for the Times and a variety of other publications. It covers small businesses and self-employment. How to register for VAT online: a simple guide If your turnover exceeds the VAT threshold, you do not have to make a decision – you are required by law to register for VAT. If your business` turnover has reached £85,000 or more in the last 12 months, or is likely to be in the coming year, you will need to register for VAT.

Business owners only occasionally ask how to check if a business is vat-registered, but they should do so more often. It`s a quick and easy process that can ensure that you don`t pay more than is required of a supplier who incorrectly or even fraudulently charges VAT. Instead of focusing on the details of the VAT charge, we`ll look at the general pros and cons of VAT registration so you can understand what`s really important for your small business. .