You must register for VAT with HM Revenue and Customs (HMRC) if your business’ VAT taxable turnover is more than £85,000.
When you register, you’ll be sent a VAT registration certificate. This confirms:
- your VAT number
- when to submit your first VAT Return and payment
- your ‘effective date of registration’ – this is the date you went over the threshold, or the date you asked to register if it was voluntary
You can also register voluntarily if your turnover is less than £85,000, unless everything you sell is exempt. You’ll have certain responsibilities if you register for VAT.
Keeping up-to-date with VAT rules is essential if you’re going to avoid harsh penalties.
The penalty regime sees automatic penalties issued, even for an innocent error, unless you can prove you have taken “due care”. Instructing a tax advisor is considered evidence of this.
There are a number of indirect taxes, including VAT, which can all impact your business, like insurance premium taxes, environmental taxes and stamp duty. These taxes are governed by complex regulations that change on a regular basis. Smailes Goldie can offer full support in managing your indirect tax requirements, making sure you fully comply with regulations whilst minimising your tax bill.
To ensure you are paying the correct VAT, it is important to regularly review the VAT treatment of your supplies, both now and in the past. This may help you recover any overpaid or incorrectly charged VAT in previous periods.
Our tax team can work with you to review your indirect tax liabilities and identify when you’re eligible for a retrospective VAT refund. We can also offer full VAT compliance support by producing and submitting your VAT returns for you.