Should you register for VAT?
You must register for VAT if:
• you expect your VAT taxable turnover to be more than £85,000 in the next 30-day period
• your business had a VAT taxable turnover of more than £85,000 over the last 12 months
You must register if, by the end of any month, your total VAT taxable turnover for the last 12 months was over £85,000.
You have to register within 30 days of the end of the month when you went over the threshold. Your effective date of registration is the first day of the second month after you go over the threshold.
Between 1 July 2020 and 30 June 2021 your VAT taxable turnover was £100,000, and this was the first time it had gone over the VAT threshold. You must register by 30 July 2021. Your effective date of registration is 1 August 2021.
Contact us if you would like to discuss this further.
Making tax digital for VAT
Making Tax Digital VAT rules will be extended to all VAT-registered businesses from April 2022, which will affect an estimated 1.1m VAT-registered businesses. For accounting periods that start on or after 1 April 2022, all VAT-registered businesses will need to maintain digital VAT records and submit their VAT returns digitally.
We recommend you do not leave the transition until the last minute! Contact us if you require assistance, either in making the transition with HMRC, or implementing “digital records”..
