Wondering what the threshold is for VAT? Well in the UK you will need to register for Value Added Tax (VAT) once your annual VAT taxable turnover is over £85,000 (or you expect it to be in the next 30 days).
What is VAT taxable turnover we hear you ask - it is the total value of what you sell which is not exempt from VAT.
Once you have registered with HMRC you will receive your VAT number, date of registration and when your first VAT return and payment will be due.
From date of registration you will then need to make sure your business does the following:
- Charge VAT correctly on non-exempt goods
- Submit VAT returns
- Pay and VAT due
- Keep full records of your VAT returns
Though you will now need to charge your customers VAT at the correct rate you can also then claim back VAT on any purchases made for your business.
Registering for VAT can be pretty daunting, which is why we offer services to do this for you and we can even put you in touch with an accountant to help you keep on top of your finances.