Tax
Register for VAT as a Limited Company
Do you need or want to register for VAT as a limited company? This crucial step can increase your business’s
October 27, 2024
2:14 pm
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Skip to content We help you comply with UK tax laws by advising you on the necessary registrations with HMRC for self-assessment, PAYE, Corporation Tax, and VAT. Our team can register you and your business for all UK taxes.
In the UK, registering with HMRC is a mandatory legal requirement for all businesses and individuals with untaxed income. Delays or failures in registering can lead to penalties imposed by HMRC. Our service is designed to assist in navigating this essential process. We provide detailed guidance and support, ensuring the HMRC registration is completed accurately and on time. This service is particularly valuable for new businesses and individuals unfamiliar with the tax registration process, helping them avoid potential legal issues and financial penalties.
Individuals and businesses are assigned unique identifiers specific to each type of tax, such as a UTR number for self-assessment, a PAYE number for employer tax responsibilities, and a VAT number for businesses handling value-added tax. These identifiers are not just formalities but crucial for legal tax filings in the UK. Our service focuses on ensuring that clients understand and correctly obtain these identifiers. We streamline the process, making it straightforward and clear. Our goal is to equip clients with the necessary tools and knowledge for efficient tax management, ensuring smooth interactions with HMRC and compliance with UK tax regulations.
In the UK, you must register as self-employed with HMRC if your income (before deducting expenses) from self-employment exceeds £1,000 in a tax year. This threshold is known as the “trading allowance“. The tax year in the UK runs from April 6th to April 5th the following year.
If your income from self-employment is £1,000 or less in a tax year, you may not need to register for self-assessment or pay tax on this income due to this allowance. You must add income from ALL businesses to assess if it exceeds the £1,000 threshold.
If your VAT taxable turnover for the last 12 months was over £85,000, or you expect it to go over in the next 30 days, you must register for VAT in the UK. You must also register if you are based outside the UK and supply goods or services to the UK. You can voluntarily register for VAT if your turnover is less than £85,000, and you must pay any VAT you owe to HM Revenue and Customs from the date they register you.
To register as self-employed in the UK, you’ll need to provide several key pieces of information. Here’s a list of the typical information required:
You are eligible to claim VAT on goods and services purchased before your VAT registration under specific conditions.
For goods, you can reclaim VAT on items bought up to four years before registration if your now VAT-registered entity purchased them, are for VAT-taxable business purposes, and are either still in your possession or have been used to create other goods you still have. However, you cannot reclaim VAT on goods fully consumed before registration (like fuel or utilities), goods already sold or supplied, or goods linked to VAT-exempt supplies.
You can claim VAT on services purchased within six months before registration, provided your entity acquired them for VAT-taxable purposes. This doesn’t apply to services related to disposed goods before registration or services tied to VAT-exempt supplies. To claim pre-registration VAT, you must keep a VAT invoice or receipt for each item.
Do you need or want to register for VAT as a limited company? This crucial step can increase your business’s
You can transfer a portion of your Personal Allowance to your partner (spouse or civil partner) if you meet the