Should you be Registered for VAT?
Although VAT registration is an unwelcome burden upon small businesses, it
is obligitary to register once your yearly turnover exceeds £58k. Although some
companies dodge VAT by telling their customers that if they pay cash they won't
be charged VAT, this is incredibly risky and the financial penalties are severe
if Customs & Excise launch an investigation. However, VAT registration does
have its advantages, in that when you make purchases you can claim the VAT back,
and you may well find that your customers view you as a bigger, more professional
firm for having crossed the registration thrreshold.
- Our article answers a range of commonly asked questions about VAT registration,
such as:
- What is VAT, and how does it work?
- When do I need to register for VAT?
- Will the threshold continue to rise?
- Can I register before my turnover reaches the threshold?
- When do I need to make payments to Customs & Excise?
- Can the timing of my VAT returns be synchronised with the end of my financial
year?
- Are there any proposals to simplify the VAT system for small businesses?
- What is the flat-rate schemeš all about?
- What will happen if I fail to register for VAT on time?
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