When do I need to register for VAT?
You can register for VAT at anytime as an individual sole trader or Limited Company. If however your sales turnover exceeds £85,000
*, or is predicted to do so in the near future then it will become mandatory to register for VAT.
Why become VAT Registered?
For more Frequently Asked Questions on VAT Registration click here
- VAT registered businesses can reclaim VAT paid to their suppliers. They will also be required to charge VAT on their sales.
- Being VAT registered instills confidence in the clients and suppliers with whom you do business.
- Many online accounting systems now conveniently calculate and submit VAT returns directly to HMRC.
- Backdate claims for VAT for up to 4 years on goods (assuming you still have them) and 6 months on services for business related purchases for which you retain a valid VAT invoice.
- Choose which VAT Registration scheme best suits your business.
Why choose VAT-Registrations.co.uk?
Through our parent company "The Company Wizard Ltd" we have over 10 years experience registering our clients for VAT. We can apply our experience working with HMRC to ensure that applications are processed smoothly and without delay.
- We ensure your application is filed with HMRC within hours of receipt.
- We are typically able to provide a VAT number within just one week.
- We have over 10 years experience filing VAT Registrations for our clients.
How does VAT work?
When you become VAT registered you will need to add VAT to your customer sales. The standard rate of VAT is 20%, therefore if the NET value of your product or service is £100 you will need to add 20% on top to cover the VAT, this would equate to £20 and would give you a VAT inclusive total of £120.
It is important to remember that following VAT Registration the VAT you collect should not be counted as income but rather a liability. You are a custodial of those funds and ultimately they will need to be paid to HM Revenue and Customs at a later date, you should set this money aside and ensure it is available when necessary to pay to HMRC.
When you are VAT registered you also have the advantage of being able to reclaim the VAT paid on your supplier VAT invoices. The amount available for you to reclaim will offset the VAT collected on your sales and the NET difference will then be paid to or reclaimed (if negative) from HMRC.
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