VAT Registration Advice

It’s one number¬†(¬£77,000 from 1 April 2012), so why is it so easy to get it wrong with the compulsory VAT registration threshold in the UK.

If your VAT taxable turnover (sales) total for the previous 12 calendar months exceeds this compulsory registration threshold, or the sales you expect to make in next 30 days will exceed that threshold, you MUST register for VAT within the next 30 days.

You can now register for VAT online on the HMRC website; however you must be careful because many things can go wrong. If you make a mistake with the form, the Taxman may not let you correct it.

Examples:

  • If you exceed the VAT registration threshold due to a ‘blip’ in sales, you can ask the VAT-man for permission not to register for VAT, but you must ask first and permission may not be granted.
  • You can reclaim VAT on services they purchased for your business in the six months before the day your VAT registration is effective from, so it is essential to time your VAT registration date with an eye on the invoice dates for those expensive services. If the service relates to an asset which was no longer held at registration, the VAT can’t be recovered as pre-registration VAT.
  • If you receive a large order which will push your sales over the VAT registration threshold for the next 30 days alone, pay attention to the delivery dates for that order. A staggered delivery for the order may mean you do not exceed the VAT threshold in the next 30 days, and you may register for VAT too early.

About bill

A Glasgow based bookkeeper offering not just bookkeeping but other business services including but not limited to business management and office administraion.
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