VAT – Value Added Tax

Introduction

Each year the Government sets a figure – should it be the same as the previous year or different – which if met by your company, you need to register for VAT.

If your business satisfies any of the following statements, you need to register for VAT:

• If your taxable turnover in the previous year exceeded £64,000*
• If your taxable turnover in the next 30 days is expected to exceed £64,000*
• The threshold to de-register (e.g. If your turnover goes below VAT level) is £62,000*

Furthermore, if you are currently trading – or plan to trade – with suppliers in EU countries, you are also required to register for VAT within 30 days.

More Information

The following link will direct you to a document on the HM Customs & Excise web site (www.hmce.gov.uk) and will give you further detailed information on registering for VAT.

Visit the following link to view the HMCE VAT document:

The complete list of contents within the document are as follows:

The VAT Flat Rate Scheme

Do you have a ‘taxable’ turnover of less than £150,000? If so, your business may benefit from the Vat flat rate scheme.