Make sure you keep a rolling 12-month turnover summary!
A business with turnover in the previous 12-month period exceeding £85,000, or turnover is expected to exceed £85,000 in the next 30 days is required to register for VAT. If a trader is already registered for VAT, starting another business means registration has to be immediate.
Take care when calculating the turnover! For furnished holiday lettings as an example, the monies received in a month may be say £4000, but this could be £5000 rental less £1000 letting agent commission. The turnover for that month is the gross £5000!
There are some hefty penalties for late VAT registration as well as cash flow implications when the arrears also need to be paid!
Contact us today if you would like a free spreadsheet to monitor the figures, or there are other ways it can be tracked using online software products.
