Once your annual turnover reaches £85k or above, it’s time to register with HM Revenue & Customs (HMRC) for Value Added Tax (VAT).
In the course of running your new business, you’ll buy a whole variety of different goods and services from your suppliers. You’ll be paying VAT on the majority of these transactions as part of the overall cost on the supplier’s invoice.
And when you invoice a customer, you’ll also be adding a VAT element to the net price, and collecting the VAT to pay back to HMRC.
If your customers, on the whole, aren’t registered for VAT then it’s worth holding off on registering for VAT (it’s an additional cost for them, after all). But if most of your customers are set up for VAT, it can even be worth getting yourself VAT registered early, before you reach the magic £85k turnover. Your business customers won’t be put off, as they can reclaim their VAT, and you get the advantage of claiming back your VAT-able costs on your purchases. It’s a win-win situation.
So, what are they key things you need to know about VAT when running a start-up? Click the links below to find out more.
- What is Value Added Tax (VAT) and why do I need to know about it?
- How do I register for VAT?
- What VAT scheme should I be on?
- What's the flat-rate scheme and why should I be on it?
- What are the different VAT categories and when do they apply?
Those are just a few of the key VAT questions you’ll have when thinking about VAT for your start-up. So we’ve put all the most common questions and answers into our VAT FAQ section.
If you need help with your start-up VAT, give us a call on 01454 300 999 or drop an email to firstname.lastname@example.org