FID Trust International

For businesses with less turnover then required for VAT registration are definitely worth to be registered for VAT voluntary because you can claim back VAT on goods and services: office supplies, vehicle expenses and others.

Little accounting in you supply your data definitely worth it. VAT registration provides a visible respect for you and as many:

  1. serious banks (especially merchants) require VAT registration,
  2. special accounts for international transactions (eg. Western Union) require VAT registration,
  3. Sole – Traders and Partnerships this is the only way to show your legal status,
  4. make a trade with EU to claim your VAT,
  5. products and services provided by UK businesses are free to VAT which are not affected on your VAT claims, much more.

From us you will:

  1. You will always get your claims in time.
  2. Because all VAT transactions are already on our data, your accounting bill will be less.
  3. Have your paperwork done for all new accounts which your business will require.

VAT taxable turnover is the total value of everything you sell that isn’t exempt from VAT.

You must register for VAT with HM Revenue and Customs (HMRC) if it goes over the current registration threshold in a rolling 12-month period. This isn’t a fixed period like the tax year or the calendar year - it could be any period, eg the start of June to the end of May.

The current threshold is £82,000.

It usually goes up on 1 April each year. There are different thresholds for buying and selling from other EU countries.

To check if you’ve gone over the threshold in any 12-month period, add together the total value of your UK sales that aren’t VAT exempt, including:

  1. goods you hired or loaned to customers,
  2. business goods used for personal reasons,
  3. goods you bartered, part-exchanged or gave as gifts,
  4. services you received from businesses in other countries that you had to ‘reverse charge’,
  5. building work over £100,000 your business did for itself Include any zero-rated items - only exclude VAT-exempt sales, and goods or services you supply outside of the UK.

You must register for VAT - though HMRC may allow you ‘exception from registration’ if your turnover goes above the threshold temporarily.

You must register straight away if you expect the value of everything you sell in the UK which isn’t VAT-exempt in the next 30 days alone to be over £82,000.

You should check your rolling turnover regularly if you’re close to going over the threshold.

Usually, you only need to register for VAT where you’re based. But if you’re supplying digital services to consumers based in other EU countries, you must either:

  1. register for VAT in each country where you’re supplying digital services,
  2. sign up for the VAT MOSS service.

You need to do this even if your turnover is below the VAT registration threshold.

Digital services include things like broadcasting, telecommunications services, video on demand, downloadable music, games, apps, software and ebooks.

There’s a time limit for backdating claims for VAT paid before registration. From your date of registration the time limit is:

  1. 4 years for goods you still have, or that were used to make other goods you still have,
  2. 6 months for services.

You can only reclaim VAT on purchases for the business now registered for VAT. They must relate to your ‘business purpose’. This means they must relate to VAT taxable goods or services that you supply.

You should reclaim them on your first VAT Return (add them to your Box 4 figure) and keep records including:

  1. invoices and receipts,
  2. a description and purchase dates,
  3. information about how they relate to your business now.

You can get help from us if you don’t understand something about your tax, eg tax returns, allowances and tax codes.

You should also contact them in the first instance if you:

  1. can’t pay your tax bill on time,
  2. disagree with a tax decision,
  3. have additional needs, etc.

An accountant or tax adviser may be able to help you with your tax. We offer services like filling in your Self Assessment tax return or providing advice if you run your own business.

As a Chartered accountants we are qualified members of a professional body.

To be registered for VAT or to be served for VAT just contact us.

Please contact us by telephone 0207 439 3400 (0044 207 439 3400 – International) or E-mail if you wish to join our growing list of clients.