VAT Registration in the UK: Things to Learn About British VAT Registration
Value Added Tax or VAT is a tax applied to the purchase price of goods, services, and other taxable supplies that are bought and distributed within the UK. It was firstly introduced in the country in 1973 and is consistent with the VAT tax system that operates within the European Union. VAT registration in the UK is a process of listing your business with the government as the actively operating in production and sales.
Do I Need to Register for VAT in the UK
In the UK, businesses are obliged to register for VAT if their turnover exceeds the £85,000 threshold. Let’s dive into more details.
First, you must register for VAT if you expect your VAT taxable turnover* to beat this threshold within the next 30-day period. Thus, you need to register before the 30-day period is over, not later than the day your turnover went over the limit.
Second, apply for VAT registration if your VAT taxable turnover exceeded the limit over the past 12 months. This case requires business owners to register for VAT within 30 days of the end of the month when they went over the threshold.
Many small businesses and startups whose turnover is under £85,000 can also choose to register for VAT. For them, preemptive registration is an opportunity to save time and reduce the hassle of adjusting prices to include the Value Added Tax rate.
*Please, note that the taxable turnover is the total value of all taxable sales a business makes throughout the taxable year.
What Is the UK VAT Tax Rate
It’s natural that you want to know how much your business needs to give when it’s finally registered to Value Added Tax. Here are the official numbers.
The standard VAT rate in the UK is 20%. It applies to most goods and services while some categories are the subject of a reduced rate. For example, for home energy and children’s car seats, the tax rate applied is 5%. Zero-rated goods and services are most food and children’s clothes.
What is Included in VAT Registration in the UK by Chern & Co
The price of British VAT registration services by our company is €500. We take full responsibility for all necessary services for the successful completion of the procedure. These include the following:
- Preparation and submission of your VAT registration application to HMRC by a VAT application expert;
- Access to a VAT registration expert for a detailed consultation;
- Confirmation of your VAT Registration Number;
- Certificate of VAT Registration (supplied by HMRC);
- Creation of your own HMRC Government Gateway account to activate your VAT registration online.
Application usually takes up to 30 working days to process. Time frames can change due to various circumstances.
VAT Registration In Britain with Chern & Co
VAT registration in the UK with Chern & Co is quick and hassle-free. We have deep expertise in the field which is confirmed by hundreds of satisfied clients. Our employees are ready to provide you with professional assistance at an affordable price. Don’t hesitate to book a free consultation right now!