VAT Registration Guidance

[limpsfield]

I do some work through a limited company, I am the sole director. This month is going to tip me over the VAT registration threshold so I need to sort out registration.

Any guidance/pitfalls as to which scheme would be best, if there is much a difference for a small company? Turnover in the short to medium term is unlikely to be much more than £100,000. I do have an accountant but thought I would put it out here too.

Thanks.

[Eric Mc]

The VAT rules are essentially the same for large and small businesses.

Try and organise VAT Return quarters that coincide with your company's financial year end. It makes life so much easier.

[limpsfield]

Thanks Eric. My year end is Feb and I need to register this month. I presume if I left it to the end of Feb there would be penalties.

I am hoping it is straightforward enough. I have an accountant for the end of year stuff but do my own payroll with that HMRC software so hoping the VAT won’t be too onerous.

[2 sMoKiN bArReLs]

Eric Mc said:

Try and organise VAT Return quarters that coincide with your company's financial year end. It makes life so much easier.

Just as a matter of interest..why? (other than reconciling turnover).

Not doubting your wisdom of course, just interested.

[anonymous-user]

depends on how much you can claim back but the flat rate scheme is easiest to administer, although it's not quite as good as it used to be as they reduced the incentive.

[Eric Mc]

2 sMoKiN bArReLs said:

Eric Mc said:

Try and organise VAT Return quarters that coincide with your company's financial year end. It makes life so much easier.

Just as a matter of interest..why? (other than reconciling turnover).

Not doubting your wisdom of course, just interested.

Reconciling turnover is one aspect that is easier.

It also makes reconciling the VAT balance due at the end of the financial year (which will form part of the balance sheet) with the balance due as per the VAT returns a lot easier.

It's not really a VAT matter - more an accounting and reconciling matter.

[Eric Mc]

limpsfield said:

Thanks Eric. My year end is Feb and I need to register this month. I presume if I left it to the end of Feb there would be penalties.

I am hoping it is straightforward enough. I have an accountant for the end of year stuff but do my own payroll with that HMRC software so hoping the VAT won’t be too onerous.

The rules say you are supposed to apply for VAT registration within 30 days of finding out you know you are GOING to go through the turnover threshold - so register now is what I'd say.

[2 sMoKiN bArReLs]

Eric Mc said:

2 sMoKiN bArReLs said:

Eric Mc said:

Try and organise VAT Return quarters that coincide with your company's financial year end. It makes life so much easier.

Just as a matter of interest..why? (other than reconciling turnover).

Not doubting your wisdom of course, just interested.

Reconciling turnover is one aspect that is easier.

It also makes reconciling the VAT balance due at the end of the financial year (which will form part of the balance sheet) with the balance due as per the VAT returns a lot easier.

It's not really a VAT matter - more an accounting and reconciling matter.

Aha.