VAT registration forms can seem complex; We can assist you with all the paper work required. HMRC may require further information, we can deal with HMRC direct if you would prefer, doing our best to ensure that HMRC have all the information they need so the process of registering runs smoother.
First we can help you work out whether you should register for VAT, and then we can help you through the process of registering whenever it is appropriate, as well as helping with deregistering should you ever need that.
Should You Register For VAT?
Deciding on whether to register or not, is a key decision particularly at the start of a new business.
Businesses can chose to register voluntarily but it is mandatory to register when:
- Turnover in the past twelve months exceeds £77,000; in this case you must notify HMRC within 30 days of the end of the relevant month. By keeping accurate records you can conform to this and avoid penalties. The ‘I didn’t know’ excuse will have no sway with the HMRC as business are expected to have management systems in place to give accurate VAT reports as and when needed.
- If you expect that the turnover in the next 30 days will exceed £77,000; here notification must be within thirty days from the date of the expected threshold to be exceeded.
It is important to monitor turnover as there is a penalty for late registration. This penalty would be in addition to the tax payable.
Once registered for VAT, your business will have to:
- Account for output tax on all taxable supplies.
- Keep proper VAT records and accounts.
- Send in VAT returns when requested to do so by HMRC, usually quarterly.
We can assist you with VAT registration, and if preferred complete your VAT returns as well.
VAT De-registrations
From the 1st April 2012, application can be made to de-register on the basis of taxable turnover in the next 12 months not exceeding £73,000. Compulsory de-registration is required when the trader stops making taxable supplies or there is a change in legal status.
We can carry out this process for you.
Voluntarily Registration: Advantages & Disadvantages
It is possible to register for VAT, even if you do not reach the current threshold, as it may be advantageous to do, some potential advantages include:
- Repayments of VAT: Once registered you can charge for VAT on the business taxable supplies and goods (output tax), you will be able to reclaim from HMRC the vat on your business purchases (input tax), if more input tax has been paid than output tax, HMRC will refund the difference. This can be particularly useful at the start of a business when most business purchases are made.
- Increased credibility for your business: By being a VAT registered business, could be the difference of whether some of your customers carry out business with you.
- Potential savings: If your supplies are zero rated, you can still reclaim VAT on the business purchases, resulting in a refund from HMRC.
However the advantages must be weighed against the increased workload, once registered for VAT, your business will have to:
- Account for output tax on all the taxable supplies.
- Keep proper VAT records and accounts.
- Send in VAT returns when requested to do so by HMRC.
We can help your business with this. We can take the hassle of completing and submitting returns away from you. We can calculate the businesses VAT liability and complete the VAT return in a timely manner, avoiding you facing a penalty for late submission and late payment.
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Once you’re registered I can help you meet your VAT obligations.
