VAT Registration Services
A tax imposed on goods and services. VAT stands for value-added tax and VAT zones are places where VAT is applicable and charged to consumers at each stage of production and distribution. It is usually set at 20% or at 1 of 3 different rates which are (5% – 0 – exempt).
Do I Need To Register For VAT?
You need to register for VAT in the UK if your business’s VAT-taxable turnover exceeds £85,000 in the past 12 months, or if you expect to surpass this amount in the next 30 days. You can also register voluntarily if your turnover is below this threshold, which may help with reclaiming VAT on expenses.
Our Accountant
Provide hassle free VAT registration that could be challenging or complicated while you are in the process of starting a business.
- Step by step approach by experts
- Comply with administrative burden
- Reclaim VAT on goods or services
- Grow the perception of the business
- Local tax accountants & consultants
- Guidance, tailored tax advice & advisory
- Starting from just £99
There are numerous remunerations. The most obvious benefit is that you’re able to collect VAT from your customers and then pass it on to the government. This can save you a lot of money, as the government charges 5% – 20% VAT on all goods and services.
You’re also able to claim back the VAT that you’ve paid on business expenses. This can be a huge saving, as the VAT rate is often 20% or more. Finally, by being VAT registered, you’re seen as a legitimate business. This can help you to win new contracts and increase your sales.
The first is that it can be costly to set up and maintain a VAT system. Additionally, VAT can be complex to administer and comply with, if you don’t have an accounting firm assisting you. Finally, VAT can be expensive for businesses to pass on to consumers.
The first step is to determine whether or not you’re required to register for VAT. This can be done by checking the VAT threshold for your particular VAT zone. If your annual turnover exceeds this amount, you’ll need to VAT register.
The next step is to set up a VAT system using bookkeeping software or by maintaining accurate records of your sales and purchases. Once you have a VAT system in place, you’ll need to file a VAT return on a regular basis, it will summarize all your sales and purchases for the year and detail how much VAT you’ve collected and paid.
First and foremost, it’s important to be aware of the VAT rate in your particular VAT zone. You’ll also need to keep track of the VAT you’ve charged and the VAT you’ve paid. It can be done using bookkeeping software or by maintaining accurate records of your sales and purchases.
Finally, it’s important to file your VAT return on time and ensure that you’re always up-to-date on any changes in VAT regulations.
FAQ - VAT Registration
Who is exempt from VAT registration?
Businesses with annual taxable turnover below the VAT threshold (currently £85,000) are generally exempt from mandatory VAT registration. Additionally, some types of goods and services, such as healthcare, education, and financial services, may be exempt or zero-rated.
Do I need to pay VAT as a small business?
If your business’s taxable turnover exceeds £85,000 in any 12-month period, you must register for VAT and start charging VAT on your sales. If your turnover is below this threshold, VAT registration is optional.
Is it worth voluntarily registering for VAT?
Voluntary registration can be beneficial if you incur VAT on purchases and want to reclaim it, or if being VAT-registered adds credibility with clients. However, it does require more paperwork, so it’s important to weigh the pros and cons based on your business needs.