The VAT registration threshold is £85,000 and under current plans, will remain at this level until March 2022. This should give businesses clarity about their VAT status as the UK looks to leave the EU.
Following a report issued by the Office of Tax Simplification (OTS) in 2017, the government is intending to review the threshold and in particular, look to "smooth" its impact.
If your turnover is nudging around the registration threshold, it is vital that you update your bookkeeping records regularly. By doing so, you will be able to predict and prepare for when your business is due to go over the £85,000 mark and can register on time and prevent any late registration penalties.
Having registered on time, you can then start accounting for VAT, so you’re not facing any large, backdated payments to HM Revenue & Customs.
If you need advice or help about VAT registration, the VAT schemes available to you and how to manage your affairs when you have registered for VAT, don’t hesitate to contact us. We can put you in touch with your local TaxAssist Accountant who will be delighted to help.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.