Posted by James Pearson on 12 Dec 2014
When to Register for VAT
When Should I Register?
You may need to register for VAT, or you may be able to choose to register voluntarily if you are doing any of the following kinds of business in the UK:
- Supplying goods or services within the UK. If your turnover of VAT taxable goods and services supplied within the UK for the previous 12 months is more than the current registration threshold of £81,000 (for 2014/15), or you expect it to go over that figure in the next 30 days alone, you must register for VAT. However, if your turnover has gone over the registration threshold temporarily then you may be able to apply for an exception from registration.
- Taking over a VAT-registered business from someone else. You have to add your own VAT taxable turnover over the last 12 months (if any) to that of the business you’re taking over. If the total goes over the £81,000 registration threshold on the day of the takeover, you’ll have to register. However, if your turnover has gone over the registration threshold temporarily then you may be able to apply for an exception from registration.
- Receiving goods from other countries in the European Union (EU).If you have received goods from other EU countries in the UK (these are known as acquisitions) with a total value greater than £81,000 in the current year since 1 January, or you expect to acquire more than that value in the next 30 days alone, you must register for VAT.
If you’re carrying out one or more of the business activities described above but you haven’t crossed the registration threshold, you can still apply to register for VAT voluntarily – it might be of benefit to you if your business makes zero or reduced-rated supplies.
There are various schemes available that try to reduce the administrative burden of VAT for smaller businesses, such as annual accounting, cash accounting, and the flat rate scheme.
How to Register for VAT
To apply for VAT registration, you can either use HMRC’s online services or send paper forms through the post. Most applications for VAT registration can be completed online but there are some circumstances where you have to apply by post. Tax Innovations can guide you through this process.
Contact Tax Innovations
- Property Partnership Incorporation and SDLT
- Overseas Pension Changes 6 April 2017
- Top 10 tax tips for expats moving to the UK
- Tax on Lump Sum Payments from Foreign Pensions
- Employee Share Schemes