HM Revenue and Customs sign

VAT

Whether you are a sole trader or a limited company you have to register for VAT once your business turnover reaches £83k you have to register for VAT.

SMEs can register for VAT voluntarily, even if their business doesn’t turn over the minimum level at which it becomes obligatory. Why would you? May be the question, on the lips of many….

Not only can your VAT registration add credibility to your business, but it can also be advantageous if:

  • The nature of your trade means that your costs or purchases include VAT.
  • Most of your customers are VAT registered and can claim back the VAT that you have added to your sales.
  • Your supplies are mainly zero rated for VAT purposes.
  • You are eligible for the Flat Rate Scheme

However, if none of the above apply then it may be better to delay registration until you have to.

Information on registering for VAT is available from the HMRC website, or call the HMRC VAT helpline on 0845 010 9000.

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