HMRC has launched a digital tool to help businesses estimate what registering for VAT may mean for them.
The VAT Registration Estimator helps to show businesses when their turnover could require them to register for VAT and its effect on profits.
A business must register for VAT if:
- Total VAT taxable turnover for the previous 12 months is more than £90,000.
- Turnover is expected to go over the £90,000 VAT threshold in the next 30 days.
- They 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.
A VAT-registered business must charge VAT on eligible sales and can usually reclaim it on eligible purchases.
Jonathan Athow, HMRC Director General for Customer Strategy and Tax Design, said:
‘We know that the majority of our customers want to get their tax right. We have listened to what businesses have said and the new tool is designed to help them understand VAT registration, including when they might be required to register.’
Internet link: GOV.UK