Should you be VAT registered ?

If your sales in the last twelve months have been over £77,000, then you will almost certainly need to be VAT registered.

Once registered then VAT must be considered every time that you make a sale.

The standard rate of 20% will apply to most sales and the default position is that you will be required to complete a VAT return every 3 months.  There are alternative ways to complete your VAT Return such as Cash Accounting where you only pay the VAT over to HMRC when you have been paid !, Annual Accounting – where you pay a fixed monthly standing order and only complete one VAT return per year, Flat Rate Scheme – where you pay a fixed % of your gross sales but do not claim any VAT back on your purchases.

As you can see there are many different options and professional advice is required to see which is best for your business and it is very important that your bookkeeping reflects the scheme that you are on.

It is important to check the details which are available at or contact us to talk through the different options.

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