Do you need to register you business for VAT and if so what need to be consider? The quick answer is yes, if your business services, sales or supplies exceeds the minimum statutory registration limit than you needs to register for VAT.
You can also register voluntarily with VAT even if your turnover is below the statutory threshold limit if there is requirements for that for doing your business. This can be advantageous for you to register voluntarily if:
- The most of your transactions, costs or purchases include VAT
- You can claim back the VAT that you are paying on your purchases or cost if your sales and supplies are exempt, zero rated or less than the standard rated for VAT purpose.
There are number of Special Schemes introduces by the HMRC which can be considered for the options keeping in views each and independent circumstances of the business.
Cash flow is main concern of every business to help with this cash flow problem HMRC have created a number of Special Schemes. Few of them are:
- Cash Accounting
- Flat Rate Scheme
- Annual Accounting
- Special Schemes for Retailers
For details of above schemes or to discuss the needs or advice on VAT matters we are just a call away to help you.
Whether you should use any of the special schemes above, or whether you should be registered for VAT or not, depends on your individual business circumstances.