Industry News - 6th February 2024
Do you know if your business should be VAT registered? Here is a short overview of when and how to register for VAT and how to cancel your VAT registration if it no longer applies to your business.
The taxable turnover threshold that determines whether businesses should be registered for VAT is currently £85,000. The taxable turnover threshold that determines whether businesses can apply for deregistration is £83,000.
Businesses are required to register for VAT if they meet either of the following two conditions:1. at the end of any month, the value of the taxable supplies made in the past 12 months or less has exceeded £85,000; or
2. at any time, there are reasonable grounds for believing that the value of taxable supplies to be made in the next 30 days alone will exceed £85,000.
This means that you are required to look back over the last 12 months to see if you have a requirement to register and at the same time keep an eye on your future sales, if you expect to make taxable supplies over £85,000 in the next 30 days.
Businesses with no physical presence in the UK may have a liability to be VAT registered in the UK if they supply any goods or services to the UK (or expect to in the next 30 days).
Please contact us if you have any questions regarding VAT.