22/02/2023
VAT, or Value Added Tax is a tax added to most products and services sold by VAT registered businesses in the UK. Businesses have to register for VAT if their VAT taxable turnover is more than £85,000. The business can also choose to register if their turnover is less than £85,000.
Knowing when to become VAT registered with HMRC is an important step in the life cycle of any business.
Being aware of the requirements set by HMRC is an essential part of making sure your business meets all the necessary criteria and doesn’t incur fines, penalties or unexpected liabilities.
Due to the complexity of the rules, it's crucial to know the criteria to determine if you do need to register.
Key points to consider are:
Are your goods or services classed as exempt?
Does your business exceed the VAT taxable turnover of £85,000 in any consecutive 12 months?
What is your business status?
Do you buy/sell from/to VAT registered businesses?
Find out more at:
https://www.rlacapital.co.uk/posts/when-become-vat-registered