HM Revenue & Customs has introduced a new tool to help businesses understand the implications of VAT registration.
VAT registration is required if:
- Your total taxable turnover exceeds £90,000 over the past 12 months.
- You anticipate your taxable turnover will surpass £90,000 in the next 30 days.
- You are based outside the UK and supply goods and services to the UK.
Taxable turnover includes the total value of all sales, excluding items exempt from VAT.
Businesses can also choose to register for VAT voluntarily even if their annual taxable turnover is below £90,000.
If most of your customers are VAT registered, voluntary VAT registration could be beneficial as it allows you to reclaim VAT on your purchases without increasing costs for them.
The new HMRC tool helps estimate the VAT your business might owe or reclaim if you register. You can use the tool to explore various scenarios and understand the potential impact on your business.
Please click on this link to use the tool
CB Reid offer outsourced compliance services ranging from payroll and VAT return preparation to added value services such as management accounts and forecasting. Whilst some clients opt to outsource certain elements, others have entrusted CB Reid with their entire finance function. If you would like any advice or support for your business, please do not hesitate to get on contact.