Voluntary VAT Registration
- Registering for VAT (Value Added Tax) is mandatory for businesses with a taxable turnover exceeding £82,000 (2016 threshold).
- 2.45 million businesses are VAT registered in the UK.
- VAT registration in the UK rose by 3.8% last year.
- Small and medium sized businesses account for 99.9% of all enterprises in the UK. Businesses with lower turnover can opt for voluntary VAT registration.
Advantages of Voluntary VAT Registration
There are numerous advantages to preemptively registering your business for VAT before reaching the threshold. Some of the key benefits are as follows:
- Elevates business status among competitors.
- Conceals a business's turnover from clients.
- If your input tax is greater than your output tax, you can reclaim VAT.
- VAT from the last 4 years can be recuperated on capital purchases.
- No added stress when turnover exceeds the mandatory threshold.
- No risk of late registration penalties.
- A wide choice of cloud accounting systems now support many aspects of VAT Accounting.
- Calculate and file your returns electronically, direct with HMRC.
Becoming VAT registered is an important decision to make, but long term will no doubt enhance the image of your business. --Latest--