Are you over the compulsory VAT registration threshold?
You must register for VAT with HMRC if your VAT taxable turnover exceeds the registration threshold (currently £82,000) in any 12-month period.
- Registration is also compulsory if you expect to go over the threshold in a single 30 day period.
- If you believe your VAT taxable turnover is exceeding the threshold for a temporary you can apply to HMRC for an exception.
- If you register later than 30 days after exceeding the threshold you may face penalties.
Voluntary registration is permissible even if VAT taxable turnover is below the threshold.
VAT taxable turnover is essentially your UK sales including zero rated items but excluding VAT exempt items such as insurance and charity fundraising events.
Once you have registered for VAT you will have to start managing a variety of VAT responsibilities;
- Charge the correct rate of VAT on sales
- VAT record keeping
- Manage VAT submissions (including reclaiming VAT and payments to HMRC).
HMRC offers VAT registration advice and assistance on its website. If you need help deciding whether or not you need to register or want someone to manage the hassle of all the admin then Lewis Smith & Co. can help.
All you have to do is call us on 01384 235549 or email email@example.com.
Lewis Smith & Co. – Accountants for Sandwell businesses