Understanding VAT UK Registration

By | August 6, 2020

VAT UK registration is very crucial if you want to start a business in the UK. VAT, as others may not know, refers to Value Added Tax. It is either voluntary or a mandatory obligation imposed by the government in every business. Every company should be able to comply with the requirements and present needed documents when you file for a VAT registration. You would need this whenever you do transactions. VAT Calculator online

VAT can also be referred to Goods and Service tax, which is one form of indirect tax. The funds for VAT are then turned over to HM Revenue and Customs for validation and record keeping. VAT UK registration is obligatory for businesses with taxable supply of goods worth more than £64,000 in a span of one year. For businesses that do not reach that amount, VAT registration is voluntary.

The procedures of a VAT UK registration require you fill out application forms (VAT 1 and VAT 2 forms). You then need to send these copies to Her Majesty’s Revenue and Customs (HMRC). This may sound something easy to do, but in fact, you can make a lot of mistakes that can lead to the decline of your VAT application. If this happens, you may have to do the process all over again. You may enter incorrect information or get a wrong application form. There are many things that may go unexpected and can cause you a lot of hassles. This is why you can rely on third party companies that can offer you VAT registration services so you can have your business legally VAT registered without going through the rigorous procedures yourself.

One of the things that you can do to make sure that you have all your documents and requirements right is to call the HMRC hotline and talk to one of their representatives. You can then discuss any questions that you may have about your company’s UK VAT registration. As an alternative, you can also get in touch with private companies that offer UK VAT registration that can give you pertinent information and at the same time, discuss any matter that you would like to bring up regarding VAT registration in the UK.

VAT UK registration may be a complicated task, but it is manageable and the procedures can be done fast and hassle with extra help from third party service providers. There are companies that can help you process your company’s VAT UK registration in your behalf. This would help you save time and effort in completing your VAT registration. Good news for people who find it time consuming to travel back and forth to VAT filling offices, it is now possible to do your VAT registration online.

VAT calculations would prove to be another challenging task for you if you are starting out a business in UK. Aside from VAT registration, your company also has to go through a number of procedures on how you can acquire accurate VAT calculations. You need to know what products or services are exempted from VAT. There are also some items that are VAT zero rated items. You should also take note of late registration penalty fees and other legalities that surrounds VAT. To keep you updated on VAT regulations and procedures on VAT registration, filling and payment, you can rely on third party service providers that can help your business handle your VAT obligations.