If you’re unsure about VAT registration and the impact it may have on your business, HMRC has launched a new online tool to help small businesses work out what registering for VAT could mean for them.
 
The VAT Registration Estimator has been developed following feedback from small businesses, highlighting a need for guidance on when they might be required to register for VAT and its effects on profits.
 
You must register your business for VAT if:•  your total VAT taxable turnover for the previous 12 months is more than £90,000 – this is known as the ‘VAT threshold’
•  you expect your turnover to exceed the £90,000 VAT threshold in the next 30 days
•  you are an overseas business not based in the UK and supply goods or services to the UK (or expect to in the next 30 days) – regardless of VAT taxable turnover.

The VAT Registration Estimator is a digital guidance tool available to new or established businesses.  It also provides additional information about the registration process and can assist in helping businesses operating under the threshold to consider whether voluntary registration could be appropriate for them.
 
If you would like to know more about VAT registration and whether your business should be VAT registered, please get in touch.
 
Internet link: GOV.UK, HMRC press release