Basics of VAT
the Basics of VAT, You are ready to start your business, or have just started operating your business, but do you need to register for VAT? When is the best time to do this? Don’t worry as all of this information is covered in this Guide.
Basics of Value Added Tax (VAT)
You are ready to start your business, or have just
started operating your business, but do you need to
register for VAT? When is the best time to do this?
Don’t worry as all of this information is covered below.
Compulsory VAT registration threshold
You must register for VAT if your turnover
exceeds £82,000* in the previous
12 months. If your turnover is below the
compulsory registration threshold, you
can voluntarily register at any time.
How does VAT work?
VAT is added to sales invoices, and purchase
invoices will have VAT added if the supplier
is VAT registered. VAT invoices must have
all the required information on them eg,
the VAT registration number. Most items
are VATable at the standard rate (currently
20%) but some items are chargeable at the
reduced rate of 5% or are zero rated (0%).
Prepare for business,
prepare for success.
ICAEW Business Advice Service
The ICAEW Business Advice Service (BAS) provides
professional advice for start-ups and owner-run businesses.
As well as practical help online in the form of white papers,
short PDFs and blog articles, we enable businesses to
receive an initial consultation at no charge from an ICAEW
ICAEW Chartered Accountants are the biggest source
of business advice, reaching over 1.5m businesses from
more than 20,000 offices across the UK.
If you need further help with VAT issues,
a free initial discussion with an ICAEW
Chartered Accountant is a good place to
start. Visit businessadviceservice.com
This leaflet is part of a series.
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