Welcome to our FAQs page where we display the most common questions from our clients.
Please remember, the answers given here are for guidance only. Should you require confirmation or further clarification, please don't hesitate to contact us & we'll be happy to help.
VAT registration is compulsory if your turnover passes the threshold, for the 2020-21 tax year is £85,000. Remember the threshold can change each year so you'll need to monitor your turnover over the previous 12 months to see if you're affected.
You can also register for VAT voluntarily if your turnover is below the threshold. This could have advantages & disadvantages depending on your circumstances & whether you choose the flat rate or standard scheme.
Registration would mean you would have to account for VAT on your taxable supplies, meaning you'll have to add VAT to the products and/or services you sell if they qualify as a taxable supply. However, you would also be able to claim the VAT charged on your purchases which could be a big help to your cashflow.
Quick answer is yes, there are two ways of doing this.
Firstly, you could claim the