VAT is easy right?
I just charge my customers 20% on top of the value of my goods and services and then pass it on to HMRC.
Well technically yes, but it's never that easy.
Firstly there's the question - do i need to register for VAT? If your turnover is under £85,000 there is no requirement to register for VAT and therefore no need to charge your customers VAT. However, you also can't claim VAT back on business purchases that you make. There will be situations where registering for VAT, even as a start up may be beneficial.
Making Tax Digital (MTD)
VAT returns need to be submitted on time and payments made on time too. The returns also need to be submitted in a recognised format to HMRC. There are many compatible software systems that can achieve this and these need to be compatible with your business processes too.
What about the future?
What does being VAT registered say about my business?
Can I register at any time?
Can I deregister if my turnover drops?
What's a Flat Rate Scheme?
The answer to these and other VAT related questions can be answered by calling 07790 206016.
Want to know more?
Call 01908 112105 for more information on VAT