HM Revenue and Customs (HMRC) has introduced a new digital tool designed to assist businesses in estimating the potential impact of VAT registration.
The VAT Registration Estimator was created in response to feedback from small businesses, who expressed a need for an online resource that could help them understand when their turnover might require VAT registration and how it could affect their profits.
Businesses are required to register for VAT if:
- Their total VAT-taxable turnover for the past 12 months exceeds £90,000 — this threshold was previously £85,000 until 31 March 2024.
- They anticipate their turnover will exceed the £90,000 threshold within the next 30 days.
- They are an overseas business not based in the UK but supplying goods or services to the UK (or expect to within the next 30 days), regardless of VAT-taxable turnover.
A VAT-registered business must charge VAT on eligible sales and typically can reclaim VAT on eligible purchases. Approximately 300,000 new VAT registrations occur annually.
The estimator provides businesses with insights into what VAT registration might entail, along with links to additional information about the registration process. It is also a valuable tool for businesses below the threshold and those considering voluntary registration.
HMRC will host a live webinar on 14 August 2024 to explain how to use the tool. Sign up here!
Find out:
– What the VAT Registration Estimator does
– Who can use it
– What information you’ll need
– How to use the estimator
Looking for a Fulham accountant to help with your small business? Get in touch – we’d love to help.
e: office@londonaccountants.co t: 0203 137 9791
Kind Regards,
The Team at London Accountants
