You are required to register for VAT if you make annual taxable supplies of £85,000, but you don’t need to wait until you get to this level of activity. As long as you can prove to HMRC that you are genuinely in the process of starting a business that will make VATable supplies, you can register before making any sales and recover VAT on expenses. This type of registration is known as an “intending trader”. This option eliminates doubt over reclaiming VAT on start up costs and you’ll get VAT back sooner than if you wait until you start your business to register and then reclaim it as pre-registration VAT.
The application process to HMRC can take a few weeks, but if you use an accountant who is already set up as a VAT agent it is likely that you will be registered more quickly. Alterledger can manage the whole process for you and ensure that you keep up to date with your VAT returns once you are registered.
Alterledger Ltd is licensed by the Chartered Institute of Management Accountants and registered with the Information Commissioners Office.
© 2020 Alterledger Ltd
Website by Haiwyre