If your taxable turnover is below the VAT threshold (£85,000 from 1st April 2017) you are not required to register for VAT.  Below this threshold you can register for VAT, but there are consequences that you should consider.  The benefits of registering for VAT can be outweighed by the additional administration required and higher prices to your non-VAT registered customers.  Alterledger can advise you of the advantages and disadvantages of voluntarily registering for VAT.  Once you are registered for VAT Alterledger can also administer your VAT accounting and submit all your returns to HMRC.

The best way to make sure you are up to date with your VAT is to use an accounting system which tracks all your VAT sales and purchases as you make them.  Online accounting software such as Xero can automatically pull out all the transactions from your bank accounts and make sure they are included in your VAT return.

If you are not familiar with the Flat Rate Scheme (FRS) for VAT, Alterledger can assess if this is suitable for your business.  For start-ups and service based businesses the FRS can save you money without the onerous administration of other schemes.