Limited Companies must register for VAT if their taxable turnover exceeds threshold set out by HMRC. Once you register, it is your obligation to charge VAT correctly, keep records, pay VAT on time and submit returns to the HMRC.

The easiest way to handle your VAT is to appoint an agent to register, submit returns and deal with HMRC. At Tax Allstars, we have years of experience with VAT and with HMRC communication. Our goal is to completely remove the stress and ever-changing technicalities of the UK tax system, so that you can spend more time growing your business. We can register you online or by post as appropriate, and you will receive your VAT registration certificate within 30 working days. In order to make sure that this process is as smooth as possible, we will ask you for a few details to do with your business activity and turnover.

VAT Schemes

Flat Rate Scheme

This scheme is designed to be simple, to relive the burden of VAT returns on small businesses with fewer resources. You must have a turnover of under £150,000 to join this scheme, but once you do, your VAT is calculated as a percentage of total annual turnover, rather than calculating the difference between receipt and payment on each individual transaction. Once you’re on the scheme, you can remain on it until your annual turnover exceeds £230,000.

Annual Accounting Scheme

This option allows you to pay VAT on account in either 9 monthly instalments or 1 annual lump sum. You only need to file once per year and you can register if your annual turnover is under £1.35m. Once on the scheme, you can remain on it until your turnover exceeds £1.6m.

Cash Accounting Scheme

The advantage of this scheme is that you only need to pay VAT to the HMRC when payment has been made from your customer. This varies from standard regulations, whereby you would pay on the invoice date. This is often difficult for smaller businesses, who may find themselves in deficit while waiting for their customers to pay their invoices.