A new online tool has been launched to help businesses understand the impact of being VAT registered. What’s the full story?
The latest interactive tool has been introduced by HMRC in response to feedback from small businesses. The new tool can estimate what registering for VAT could mean for a business. You must register for VAT if:
total taxable turnover is over £90,000 (previously £85,000), or
you expect your turnover to go over the VAT threshold in the next 30 days, or
you and your business are based abroad, and you supply any goods or services to the UK (or expect to in the next 30 days).
Your taxable turnover is the total value of everything you sell that is not exempt from VAT.
Businesses can also register for VAT voluntarily if the above criteria are not met. VAT registered business charge VAT on eligible sales and reclaim it on eligible purchases, which can create an overall refund for some businesses.
If you may need to register for VAT, or would like to understand whether it would be beneficial you can use the tool to estimate how much VAT might be owed or reclaimed by your business once you become VAT registered.
For help VAT registration contact us at 0161 224 3510 or drop an email at info@aminandcoaccountants.co.uk
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