HMRC launches VAT Registration Estimator

A new digital tool has recently been launched by HMRC to help businesses estimate what registering for VAT may mean for them.

The VAT Registration Estimator helps to show businesses when their turnover could require them to register for VAT and its effect on profits.

VAT is a tricky area for many, and one that can simply seem so confusing and daunting that many small to medium businesses just steer away from it.

But there are actually some legal constraints, under which some businesses must become VAT registered.

A business must register for VAT if:

  • Total VAT taxable turnover for the previous 12 months is more than £90,000.

  • Turnover is expected to go over the £90,000 VAT threshold in the next 30 days.

  • They are an overseas business not based in the UK and supply goods or services to the UK (or expect to in the next 30 days) – regardless of VAT-taxable turnover.

A VAT-registered business must charge VAT on eligible sales and can usually reclaim it on eligible purchases.

Jonathan Athow, HMRC Director General for Customer Strategy and Tax Design, said:

“We know that the majority of our customers want to get their tax right. We have listened to what businesses have said and the new tool is designed to help them understand VAT registration, including when they might be required to register.”

The Government has set out some useful information on what registering for VAT may mean for your business

You can find out more here: GOV.UK

The Hollies Bookkeeping Services in Shropshire is experienced at helping companies with registering for VAT. And also helping clients with VAT inspections. You can read more about that HERE.

If you want to speak to an experienced and friendly team who can help you, why not give The Hollies a call on 01743 790086, email info@holliesbookkeeping.co.uk or visit www.holliesbookkeeping.co.uk 

Image by Steve Buissinne from Pixabay

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