Registering for VAT
Discussion
You could always phone the registration office to check on progress:
HMRC registration offices
And be sure to firm up the date from which she will be registered, i.e. the date she starts accounting for VAT - not necessarily the date she receives the paperwork.
HMRC registration offices
And be sure to firm up the date from which she will be registered, i.e. the date she starts accounting for VAT - not necessarily the date she receives the paperwork.
Edited by stumartin on Wednesday 18th October 10:51
stevieb said:
Gives us hopefully some more time to get everything thorugh this quarter without worrying about VAT implications.
Hmm, be careful though - when did your better half exceed the threshold and when did her liability to account for VAT arise? If it already has arisen, then she may need to start accounting for VAT even though she doesn't yet have a VAT number. Not sure whether you've sought advice from a suitable adviser, but if you've not you may wish to, or read through Customs guidance (PN700..) carefully. Compliance is key to VAT
Smartie said:
you will have put a date on the application form for when you wish/are required to be registered - you will need to account for VAT from this date.
Bugger forgot about the date on the app form.
I will hold back from issuing invoices for a week or so until i can get clarrification from the VAT Office.
Thanks
BliarsGoing said:
What are the pro's/con's of registerig for VAT if you're starting up? If I do decide to start up alone I would be providing mainly services as opposed to reselling product.
Really depends if your customers are predominantly VAT registred (ie businesses) or not (ie the public/retail). If the former then it is usually beneficial as your customers don't mind the VAT charge on top of your costs (as they get it back) and you can then reclaim the VAT on most of your businesses expenses. If the latter then generally best to avoid registering until you have to.
Smartie said:
BliarsGoing said:
What are the pro's/con's of registerig for VAT if you're starting up? If I do decide to start up alone I would be providing mainly services as opposed to reselling product.
Really depends if your customers are predominantly VAT registred (ie businesses) or not (ie the public/retail). If the former then it is usually beneficial as your customers don't mind the VAT charge on top of your costs (as they get it back) and you can then reclaim the VAT on most of your businesses expenses. If the latter then generally best to avoid registering until you have to.
Quite agree, but on start up there are often a number of pretty big bills. If this would put you in a repayment position in your early months (assuming fully taxable), it may actually help you to be more competitive / lower costs by registering now and recovering input VAT, even though you have to charge VAT on your initial supplies. Probably worth doing your sums. Also, getting in the habit of good VAT accounting from the outset would be no bad thing - if you have time now before you need to really get things moving, this could be preferable to changing your processes "on the hoof" later on.
The other major advantage is that if you voluntarily register, you're probably less likely to risk getting the complicated rules for compulsory registration wrong when the time comes
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