Why should I register for VAT?

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...

How to complete a VAT return

If you are on the standard or cash accounting scheme this is how you should complete your VAT return. The only difference being that with standard scheme you will include all transactions as at their invoice date, for cash accounting they are included when they are...

VAT rates in the construction industry (0%, 5%, 20%)

There are occasions when plumbers – and, indeed, anyone in construction can charge VAT at 5%.  But what are the rules? Standard rate of VAT – 20% Generally, plumbers charge VAT at 20% on: Most domestic repair and maintenance work Work to newly-built structures that...

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...