A new tool designed to help businesses find out what VAT registration would mean for their business has been released by HMRC.
VAT registration becomes mandatory if:
· your total taxable turnover exceeds £90,000 over the previous 12 months.
· you expect your taxable turnover to go over £90,000 in the next 30 days.
· you're based outside the UK and supply goods and services to the UK.
It is also possible to register for VAT voluntarily even if your annual taxable turnover is below £90,000.
We have previously written an article, title 'When or if to register for VAT', which may be a useful read if you are considering registration, or are approaching the threshold (however, please note, the threshold for registration has changed from 85k to 90k since that article was written).
The new HMRC tool can help you to estimate what VAT might be owed or reclaimed by your business if you were to register for VAT. You are free to use the tool to explore multiple ‘what-if’ scenarios so that you can compare various situations and how you might be affected.
To use the tool, please see: https://www.gov.uk/guidance/check-what-registering-for-vat-may-mean-for-your-business
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