If you start a business and your turnover reaches a certain figure (crosses the VAT threshold) you may need to register for VAT.
You can register for VAT online. When you register you will be sent a VAT registration certificate telling you:
- Your VAT number (you can’t charge VAT until you have this number).
- Your official date of VAT registration.
- When you need to submit your first VAT return.
What happens when you are VAT registered?
After your official date of VAT registration you:
- Must charge the right amount of VAT.
- Can reclaim any VAT you have paid on purchases.
- Must keep VAT records and a VAT account.
- Must submit quarterly VAT returns.
- Must pay any VAT due to HMRC.
If anything changes in your company, for example if you move office, change bank or start providing a different service or products, you need to let HMRC know by submitting this form or logging onto your online account.
Flat rate VAT
If your VAT turnover is less than £150,000 you can choose to join the flat rate VAT scheme instead.
If you use an accountant they can explain how VAT works, and complete your VAT registration for you.Hannah Martin