You can apply to be VAT registered at any time if you have VAT-able sales.
Unusually for a tax, you can be better off by being registered for VAT because you’re reimbursed for the VAT you pay out. Many small businesses can be eligible for flat rate VAT, a simplified system which, depending on your circumstances, can reduce your tax bills further.
If your sales reach a certain level, known as the threshold, then you have to register for VAT. The threshold is amended each year. If there’s any chance of going over it, you should speak to us to consider what to do. In 2018 the limit is £85,000.
Once VAT registered (which we can organise for you), you have to file VAT returns generally every 3 months and pay any VAT due to HMRC. Again, we’ll let you know all the dates and deadlines, and complete your VAT return in good time.
VAT is, in concept, a simple tax. But we believe it’s one of the most complex taxes once you dig into the detail, so let us know if you have any concerns. Complexities that can arise include:
- Whether to register for flat rate VAT
- Whether it’s in your interest to do cash accounting
- Importing and exporting
- Whether your sales are zero rated, standard rated or exempt
- VAT on overseas sales made through the internet
Here at Manchester accountants, The Accountancy People, we want to help you make the right choices when it comes to VAT – so please use the contact box or ring us on 0161 947 9207 to get started.