You must register with VAT once your business generates over £85,000 yearly revenue. Octa Accountants’ VAT registration and filing services make the process hassle-free. Call our agent now or fill out a form to get a free quote for our VAT registration services.
You must register with VAT once your business generates over £85,000 yearly revenue. Octa Accountants’ VAT registration and filing services make the process hassle-free.
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Get Your Business VAT Registered In the UK!
Octa Accountants take care of the whole VAT registration and filling process so you can work on growing your business. Here’s what we do:
We compile all the essential documents, fill the 14-page application form, and send you final document for e-signatures.
VAT Calculation & Filing
A dedicated accountant manages your business’s value-added tax, calculates tax payment/returns, and file it to HMRC.
If your business earns more than £85,000 in yearly revenue, then we can help you manage your extensive VAT structure to keep you HMRC compliant.
How to register for VAT?
Once your business achieves £85k in yearly revenue or seems to be getting closer, it is time to register for VAT in the UK. You can apply for VAT registration online via HMRC’s official website.
Benefits of Outsourcing VAT Registration and Filing
Many business owners are not sure how VAT (value-added tax) works. In reality, you are not the one paying for VAT when you are a seller, as tax is included in your product or service. We just have to separate the VAT from our charges – so we do not overpay or underpay the tax. It may sound complex, right? Especially when you are selling in larger quantities.
Common VAT Accounting Schemes Are
Common VAT Schemes
VAT schemes help you pay tax to the HMRC, but a method has to be suitable for your business. Following are a few VAT schemes utilised by most companies in the UK:
Standard Accounting Scheme
Standard accounting VAT scheme is the most common method to submit the value-added tax to HMRC. A business has to keep a thorough VAT record on each sale and purchase digitally according to MTD (Making Tax Digital) plan. The company applies for a VAT return quarterly and pays the owed amount to HMRC.
Flat Rate Scheme
The flat rate VAT scheme is only acceptable for businesses with an annual turnover of less than £150,000. It is preferable for small businesses and sole traders. A business presents a quarterly fixed percentage of turnover to HMRC. You do not have to keep a VAT record of business sales or purchases in the flat rate scheme.
Annual Accounting Scheme
You can go with the Annual Accounting VAT Scheme if your business turnover is below £1.35 million per year. A business submits one VAT return yearly and still has to pay VAT quarterly on an estimation basis. There are 9 monthly payments up to 10% of last year's VAT. One can apply for 3 quarterly payments too, comprising 25% of last year's VAT payments.
Cash Accounting Scheme
Cash Accounting VAT Scheme is another method applicable for a business with a turnover under £1.35 million. According to this scheme, you pay VAT for all the sales and receive tax returns on all purchases. But you pay value-added tax when customers make payments and reclaim VAT when you pay the supplier.
Every business has different needs when it comes to managing finances. That’s why we prepare bespoke VAT registration & filing service plans according to a client’s requirements.
Book a Meeting to discuss your needs and get a fully personalised plan!
Frequently Asked Questions
Here’s a list of frequently asked questions about VAT registration from our web visitors.
What is VAT?
VAT or value-added tax is a payable amount on most products and services in the UK. Although customers pay the tax while making a purchase, the businesses (that earn over a specific threshold) have to charge it and report it to HMRC as a "tax return".
Also Read: "How to register for VAT in the UK?"
When is VAT registration required?
If your business is close to or has gained turnover above £85,000 yearly, then you must go for VAT registration. Moreover, if you are an overseas business dealing with the UK region, it is a legal requirement to get VAT registered. Late applications can result in penalties and consequences.
Who registers for VAT?
A business must register for VAT in the UK if its annual turnover is above £85,000. You document all the sales and purchases to pay VAT and reclaim tax returns.
Keep in mind some products/services are tax-exempt or zero-rated, which may sound complex to many entrepreneurs. So it is better to hire an expert accountant to manage the VAT for your business.
VAT registration advantages and disadvantages?
- You can reclaim VAT on your purchases relevant to your products/services
- Higher credibility for your business
- Some suppliers in the UK have a VAT registered as a requirement
- More administrative costs and paperwork to deal with
- You are required to file a monthly or quarterly VAT to HMRC
- Have to update the prices according to the latest VAT rate
But all the disadvantages are not really holding you back if you hire an expert from Octa Accountants. We deal with complex VAT processes while you get to focus on growing your business with all the VAT benefits.
How much is the cost of VAT registration?
There are no fees to register your business for VAT (if you apply online by yourself). Any business can apply for it on HMRC's website.
What is the VAT registration number?
You receive a unique VAT registration number when you register with VAT in the UK. It is essential while submitting VAT returns, or your reclaim will be rejected.
So it is better to get help from a tax expert than to manage the VAT yourself.
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