VAT Registration UK – Who Needs To Register For VAT?
VAT registration UK may be something that businesses are legally required to do, or it may be something that they can do voluntarily. A VAT registration is compulsory if the threshold of £85,000 is exceeded and can apply earlier in certain other situations. A business must also register for VAT if it expects to exceed this threshold within a single 30-day period. If turnover is less than £85,000 and there is no need to register for another reason, it may be possible to voluntarily register for VAT. This could be beneficial for a number of reasons. With that in mind, read on to discover more about VAT and working with leading accountants UK based.
Register A UK Company And Sign Up For VAT
While the threshold for VAT registration UK was briefly explained in the introduction, this does depend on the nature of the business. For example, if a company is not established in the UK and is making taxable supplies there, the VAT registration threshold is nil and the business must register immediately. However, if a business has a fixed establishment in the UK, then the £85,000 threshold applies. A UK company VAT registration may also be necessary for an EU established business that sells products to private individuals in the United Kingdom. This is known as distance selling, and there is a slightly lower threshold for this kind of trade. The VAT threshold in the case of distance selling is £70,000. Businesses may also need to apply for VAT registration UK, if they have bought services from outside the UK or they have acquired goods in the UK that were sent from another country in the EU. Hopefully, this short explanation provides a better understanding of whether a business needs to register for VAT in the UK. In most cases, your accountant can apply for a VAT registration online, however there are some cases where a registration must be made by post.
Working With An Accountant For UK Tax Registration
The criteria for VAT registration UK can be complex and it is best to consult a specialist accountant who can advise when to register for VAT to maximise tax efficiency. Not only will an accountant help with UK tax registration, but they will also make sure it is used to provide an advantage to businesses. After all, there are a number of advantages associated with registering for VAT earlier than is required, which is outlined in the next section. Not only this, but the risk of making a mistake on the VAT application, which asks a series of technical questions is high. If the information given is incorrect, the VAT registration could be rejected or cancelled at a later date, which can present a serious risk when attempting to establish a new business in the UK.
There are a number of factors to look out for, when looking for the best accountant to assist with tax and VAT matters. Firstly, ensuring that the business has specific experience in helping companies that are entering the UK market for the first time is key to success. Take the time to find out if the accountant has the right experience in international VAT issues. Moreover, find out what other services the company provides. A new business needs an adviser that can offer tailored financial and tax advice relevant now and later as your business grows.
The Benefits Of Attaining A VAT Registration Number Great Britain If You Are Under The Threshold
Whether or not the £85,000 threshold is reached, it is usually possible to apply for VAT voluntarily and there are a number of benefits associated with attaining a VAT registration number Great Britain from the outset. Of course, this is something to discuss with a professional VAT adviser, however, let’s take a look at some of the possible benefits for non-UK established companies of having a VAT registration in the UK. This includes that VAT paid on purchases can be reclaimed, which helps to boost cash flow.
Reclaiming VAT is also easier for non-established businesses if they have registered for VAT in the UK. Not only this, but being VAT registered can increase a company’s profile, as some suppliers will not do business with companies that have not registered for the tax. VAT registration significantly simplifies trading with other EU companies. The process is easier because when buying products from France that are shipped to the UK, French VAT will not be payable because you will pay acquisition VAT in the United Kingdom, and so the transaction can be usually be zero-rated in France. Ultimately, one of the main reasons that businesses register voluntarily is that penalties due to missing the point at which VAT must be registered are avoided. No one wants to run the risk of inadvertently missing the point at which the mandatory registration threshold is crossed and be penalised by HMRC. It is evident that there are many advantages associated with VAT registration. To find out more about how to become VAT registered in England, or for more tailored advice for your business, Axada International Tax Advisers can assist.
Expert VAT Registration UK And More About Axada International Tax Advisers
At Axada International Tax Advisers, we can assist international businesses with all aspects of setting up and running a company in the United Kingdom. This includes VAT registration UK wide and much more. We make sure business are set up and running as tax efficiently as possible and with our expert advice and assistance, compliance risk can be substantially reduced.
We have made the VAT registration process is simple and quick
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