It seems straightforward enough at first, but in reality, VAT registration is made up of a number of decisions, which can be time consuming. Many of these can be taken care of by your accountant.
Checking Whether You Need to Register
While the mandatory VAT registration threshold is currently set at £90,000 of taxable turnover in a rolling 12 month period, many businesses find that registering voluntarily for VAT below this threshold will be beneficial. An accountant will calculate your business VAT figures and advise whether registering early for VAT would be advantageous for your business.
Choosing the Right VAT Scheme
There are many different schemes that can be used when trading, such as flat rate, cash accounting and standard VAT. Your accountant can provide advice on which is best for you based on your business margins and customer base.
Submitting the Application Correctly
Your effective date of registration is the date from which you must start charging VAT. This must be entered correctly on the VAT registration form to avoid the risk of late payment of VAT in respect of a period commencing prior to the effective date of registration.
Reclaiming VAT on Pre-Registration Purchases
Reclaim VAT on purchases made prior to registration. Many businesses forget that you can reclaim VAT on goods purchased prior to registration up to 4 years and services up to 6 months. An accountant will be able to identify what can be reclaimed for you.
If you are looking for Accountants Ashford, see https://bhukgroup.com/accountancy-services/ashford.
Getting VAT registration right from the start will save so much time having to put things right later!
