If you're in business, you must register for VAT if your VAT taxable turnover for the previous 12 months is more than £81,000. This figure is known as the VAT registration threshold. The threshold changes - usually once a year announced in the Budget - so you should regularly check your turnover against the current threshold.
You must also register for VAT if either of the following applies:
- you think your VAT taxable turnover may go over the threshold in the next 30 days alone
- you take over a VAT-registered business as a going concern
For VAT registration we can assist with..
- Advising if you need to or if it would be beneficial to register;
- Completion of the VAT registration forms and formalities;
- Advising on the best VAT schemes to use suitable to your business - some you have to notify HMRC you are using and some you don't.
Preparation and Submission of VAT
In addition we can assist with...
- Completion of VAT Returns or training on how to complete them;
- VAT planning;
- Dealing with any contentious disputes that arise with Customs;
- Attendance at VAT inspections.
The deregistration threshold is £79,000. If your VAT taxable turnover for the year is less than or equal to £79,000, or if you expect it to fall to £79,000 or less in the next 12 months, you can either:
- stay registered for VAT
- ask for your VAT registration to be cancelled
If you want to cancel your VAT registration you must tell HM Revenue & Customs (HMRC) and explain why your turnover has fallen. For example, you might have reduced your opening hours or lost contracts. You'll also have to give an estimate of your turnover for the next year.
Remember that your VAT taxable turnover includes only the goods and services you sell that you have to charge VAT on, even those that are zero-rated. It doesn't include sales that are exempt or outside the scope of VAT.