Business is required by law of HMRC to register for VAT if their taxable turnover exceeds the £85,000 threshold.
VAT Registration
The business houses in UK and in other regions of UK can register for VAT by using online registration services. Also, here in UK we provide the VAT registration services for sole trader, freelancer, small business or limited company. When it’s come for VAT registration then it’s beneficial for businesses. VAT registration is an area where most of the business owner gets misunderstood. VAT registration is a good idea.
• Self-Assessment tax returns
• How to register as self-employed with HMRC
Why do you have register for VAT?
Every business should be register for Value Added Tax (VAT) and VAT taxable income is greater than £85,000. So if your taxable supplies exceed £85,000, you must register. If you fail to do so within 30 days, you might face a fine. Registering yourself for VAT can ensure that you are grown in your business and it’s allows you to reclaim VAT on purchases you make.
• Why should I register for VAT
What are the benefits of registering for VAT?
VAT Registration Threshold (£85,000 is for year 2017/18) is required by law to complete a VAT Registration with HMRC. There are some benefits of VAT registration for small business:
• To avoid Financial Penalties and can register as voluntarily for VAT whenever you want to do.
• Making a company appear larger than it is and more successful than actually it is.
• You can earn respect and recognition by registering too.
• You can claim for VAT on goods and services purchased for your business.
• Potential gains through using the Flat Rate Scheme
The main advantage of registering for VAT to businesses for reclaiming VAT paid on costs. At the meantime you will not have to add VAT to your prices to customers who can’t reclaim VAT. However, remember that you will have to keep accurate records and submit regular VAT returns on time. There are many accounting firm to assist with VAT return.