020 8429 9245

BUSINESS TIPS

Do I have to be VAT Registered

A business will either normally be VAT registered on a compulsory basis, registered on a voluntary basis or not VAT registered.  All businesses initially will not be VAT registered when they are set up or incorporated.

A business will need to become VAT registered on a compulsory basis if either:

  1. Taxable turnover has exceeded £81,000 over the past twelve months or shorter  historical period.
  2. Taxable turnover is expected to exceed £81,000 in the next thirty days alone.

This threshold is correct as at August 2014.  The threshold is increased on an annual basis.

If a business has not reached this level, registration is still possible on a voluntary basis as long as the business is making taxable supplies or is intending to do so (for example a company currently carrying out research).

For more information on VAT, contact Wisteria’s tax team on 020 8429 9245.