Value Added Tax (VAT)

• All businesses must register for VAT, if trading in a relevant activity, and turnover exceeds the relevant level.
• However, all business can register (voluntarily) for VAT if they are trading in a taxable activity, and turnover is below the current threshold, but registration may be worthwhile or beneficial in some way.

If business income reaches the relevant threshold, over the applicable timescale, the business has 30 days to register for VAT. We can help by applying for a VAT registration for you.

There are various “special schemes” available for certain types of business for example there is “VAT Flat Rate Scheme” which businesses can choose to use if they meet the criteria.

In a situation where business income is below the relevant threshold, the business may benefit from VAT registration, in any one of a number of ways, depending on your situation and circumstances.

The decision will be affected by the level of income, the types of sales, the types of customer and the level of expenses subject to VAT. Running a limited company does not necessarily mean you need to register for VAT, and being a self-employed sole trader does not always mean that a VAT registration is not required. It is best to talk this situation through with us so that you feel comfortable that you understand whether VAT is relevant for your business.