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When Would I Need To Be VAT Registered?

15th May 2019

It doesn’t matter if your sole trade (self-employed), partnership or have a limited company – if your business earns over £85,000 in a year then you need to be VAT registered.

You must register if, by the end of any month your VAT taxable turnover for the last 12 months was over and above £85,000, you have to register within 30 days of the end of the month when you went through the threshold.

WHAT IS THE VAT FLAT RATE SCHEME?

The VAT flat rate scheme was set up to make calculating VAT liability’s easier. Under the scheme the tax paid is calculated by just multiplying the VAT turnover(usually done quarterly) by an agreed percentage which is dependant on the nature of your business, HM Customs set these percentages and they can be viewed on their website https://www.gov.uk/vat-flat-rate-scheme/ .

In order to be on the VAT flat rate scheme you must apply separately after being VAT registered, the one main restriction is that your turnover in the year must be less than £150,000.

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