FREE CONSULTATION - CALL US TODAY! 0203 189 1736|info@pmaaccountants.co.uk

When should a business register for VAT?

2019-09-02T11:27:44+01:00June 22nd, 2019|Categories: Articles & Guides, Blog, VAT|Tags: , , , |

All traders – whether sole traders, partnerships, or limited companies – are obliged to register to charge and pay VAT once annual sales reach a pre-set annual threshold. This threshold remains at £85,000 for the year commencing 1 April 2019. The annual VAT threshold is determined by total sales and is not the same as total profits (which is generally sales minus expenses). A business can make a loss and still need to register for VAT! In summary, a business must register if: its taxable outputs, including zero-rates sales (but not exempt, non-business, or ‘outside the scope’ supplies),have exceeded [...]

November questions and answers

2019-09-01T23:07:45+01:00November 26th, 2018|Categories: Questions & Answers|Tags: , , , , |

Q. Are there any advantages to registering voluntarily for VAT even if my taxable turnover is less than the registration threshold? A. A business can register for VAT even if its turnover (total sales) is below the threshold and it may actually save tax by doing so, particularly if its main clients or customers are organisations that can reclaim VAT themselves. Say you want to purchase a new office printer for your business which costs £100 plus VAT, i.e. £120. You set the £120 paid out against your profits for income tax purposes. If you are a basic rate taxpayer [...]