Registering your business for VAT
One of the key decisions to make when running your own business is whether to register it for VAT. Although this can be a complicated area, the basics are easy to grasp when you're considering whether this is the right option for you and your company.
What is VAT registration for business?
If you register your company for VAT with HMRC then this means you will add the VAT rate onto any goods you invoice for. On the opposite side, if you do not need to or wish to then you will simply sell your goods at the price you set without any VAT charge on top.
What are the rules around VAT registration?
VAT registration must be undertaken by any business that has an annual turnover that reaches the threshold set by HMRC. This changes slightly each year but as of April 2017 this was set at £85,000. If you fall into this category then you are required to become VAT registered by law and begin adding VAT to your invoices. An important point is that you must register as soon as you go over the threshold amount at the time - don't wait until the end of the quarter or year!
Smaller businesses with annual turnover under the set threshold amount can choose to register if they wish, although this is not compulsory for them.
What are the advantages of becoming VAT registered?
One of the main benefits for companies is being able to claim back the tax charged when buying goods for business use. Although not everything can be claimed for, there are a lot of business costs that can, so this is a real bonus for most businesses. For smaller businesses it can also make you look more professional, although you need to make sure that charging VAT does not make your prices uncompetitive.
If you need any further advice around this area then get in touch HERE today. We are based in Seaford and Uckfield but cover the whole of Sussex & the South East for anyone needing help with tax or account issues.
Alternatively you can register for VAT online at the following link: https://www.gov.uk/vat-registration/how-to-register however we would always advise speaking to us before you do so to make sure that it is the right step for your business and that all of the possible alternatives have been thought through.
For Small Business enquiries you can speak directly to Robert:
Tel: 01825 745935
The Chancellor announces the Autumn Statement. What does it mean for you?
The Chancellor Jeremy Hunt, has presented his Autumn Statement which he says is focused on growing the economy through reducing debt, cutting taxes and rewarding work. He stated that, ‘Our plan for the British economy is working, but the work is not done.’ This article will provide a summary of the measures announced. Do look out for a full report that will be sent to our newsletter subscribers in the coming days.
A guide to capital gains tax exemptions and the family home
A valuable relief exists on the sale of the family home, but in certain situations careful planning is required to ensure that the relief is obtained. The capital gains tax (CGT) exemption for gains made on the sale of your home is one of the most valuable reliefs from which many people benefit during their lifetime. In this article we look at the operation of the relief and consider factors that may cause it to be restricted.
Sign up to receive our private content
straight to your inbox