VAT Registration Services in the United Kingdom
3E Accounting ensures all-round tax compliance for your business with VAT registration services in the UK.
Value Added Tax or VAT is the tax that is charged on the supply of goods and services. VAT is governed by the Value Added Tax Act 1994, incorporating Directive 2006/112/EC. The Directive adds a standard system of VAT, but this provision may change post-Brexit. Generally, if your business meets the VAT registration threshold, then you will need to ensure it is paid correctly and on time. The best way to do this is to get VAT registration services in the UK.
In the United Kingdom, HMRC is the tax authority in charge of all tax affairs. Limited companies or sole traders can register for VAT with HMRC. The standard VAT rate is 20%, although certain types of goods or services can attract a 5% or 0% rate. VAT is payable quarterly but returns that are due quarterly can be changed to annual filings.
Usually, VAT is borne by the supplier, who in turn, will cost it to their customers. By registering for VAT, goods or services supplied to the supplier itself will be considered as incurred VAT. This will be given credit by HMRC, allowing the business to claim it back. Becoming a VAT-registered business will also allow you to charge VAT while ensuring credibility with your customers and suppliers.
Further, most accounting systems and software can now be linked online with HMRC for VAT returns. This is in line with HMRC’s Making Tax Digital (MTD) initiative, especially for VAT. The ‘soft-landing’ period will come to an end in April 2021, whereby MTD will be in full force. All businesses will need to adopt the MTD initiative by then.
Business solution companies such as 3E Accounting offer comprehensive VAT registration services. All paperwork and filing will be handled, including filling up the VAT01 form and submitting it to the correct division of HMRC. Following proper procedure, you can get your VAT certificate within a fortnight. The certificate will contain your unique business’ VAT registration number. You will also be notified as to the first VAT return and payment dates.
Registration for VAT can be done voluntarily or become compulsory when the VAT threshold is reached. This timeframe is known as the ‘effective date of VAT registration’, i.e., when you actually registered or when you hit the threshold. Thresholds occur where taxable turnover exceeds GBP85,000, amongst other criteria. Exemptions on VAT can arise in certain circumstances, and these include:
- Certain financial or banking services
- Some types of supplies of land
- Particular types of corporate transactions
Generally, there are a few avenues where VAT is exempted for a business’ activities. For example, the supply of company shares does not incur VAT. Companies can also form groups which then make supplies between them. VAT will be disregarded in this instance. While VAT is applicable on the sale of assets, this can be exempted. As long as the transaction can qualify as a Transfer of a Going Concern (TOGC), it can be exempt from VAT.
To find out more about how you can enjoy the benefits of becoming a VAT-registered business, Contact 3E Accounting today. We offer competitive VAT registration services in the UK, and our team of professionals are ready to work with you. Get in touch with us for a quick chat on how to get your tax affairs in order. 3E Accounting also offers customisable business solutions for all your business needs.