New online VAT registration tool
A new online tool has been launched to help businesses understand the impact of being VAT registered. What’s the full story?
The latest interactive tool has been introduced by HMRC in response to feedback from small businesses. The new tool can estimate what registering for VAT could mean for a business. You must register for VAT if:
- total taxable turnover is over £90,000 (previously £85,000), or
- you expect your turnover to go over the VAT threshold in the next 30 days, or
- you and your business are based abroad, and you supply any goods or services to the UK (or expect to in the next 30 days).
Businesses can also register for VAT voluntarily if the above criteria aren’t met. VAT registered business charge VAT on eligible sales and reclaim it on eligible purchases, which can create an overall refund for some businesses. If you may need to register for VAT, or would like to understand whether it would be beneficial you can use the tool to estimate how much VAT might be owed or reclaimed by your business once you become VAT registered.
Related Topics
-
Selling spare items to your company
You’re short of cash but if you use the traditional methods to take more money out of your company you’ll pay higher rate taxes. Is there another way to extract profits without paying income tax or NI?
-
No such thing as a (tax) free lunch?
You run a small consultancy company and treat your staff to lunch in the office once a week. Your bookkeeper says it’s a taxable benefit in kind because staff lunches are only exempt if they are provided in a workplace canteen. Is this correct?
-
Judge criticises use of fabricated AI-generated cases in HMRC appeal
A tax tribunal judge has criticised the use of apparently fabricated case references generated by artificial intelligence in an appeal against HMRC. The incident highlights growing concerns over the use of AI tools in legal and tax proceedings. What happened?