What are the benefits in being VAT registered?

There are generally two reasons to register for VAT:  Compulsory: When your sales exceed £85,000 in a 12 month period. Voluntary: If registering your business for VAT will be a benefit to you (the benefit is that you can reclaim VAT paid on supplies and expenses). If...

VAT reverse charge for building and construction services

On 1st March 2021, the VAT reverse charge for building and construction services came into effect for VAT registered businesses in the Construction Industry Scheme. In a nutshell, from 1st March 2021, the reverse charge means that a subcontractor in the CIS scheme...

What to do if you have gone over the VAT threshold?

You should talk to an accountant urgently!  If at any point during a 12 month period, (good to review this monthly) your turnover exceeds the VAT threshold of £85,000, you must register within 30 days from the end of the month in which you went over the limit. If the...

How to delay being VAT registered

VAT registration and small businesses VAT registration is a problem for small businesses who sell to the general public. When your annual turnover exceeds £85,000, you must register for VAT and pay 1/6th of your gross sales to HMRC. However, there are some ways that...