Smarter accounting

Start up VAT registration

12 May 2015, Advocates, Artists, Barristers, Companies, Musicians, Sole Traders

Cut your start up costs

The timing of start up VAT registration can help you to cut costs at the most vulnerable time for your business.  Most start ups find that it can take a while before they are receiving income.  Rather than wait for sales before registering for VAT, you can register from the date the business will start to reclaim as much VAT as possible.

Voluntarily register for VAT

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.

Start up VAT Registration application

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.

Related articles

Website by Haiwyre