VAT registration turnover threshold breached?
6th April 2023
With many businesses seeing a return to pre-pandemic trading levels, now is an ideal time to review your SME’s VAT status.
Businesses must compulsorily register for VAT where ‘VAT-able’ supplies (which is usually, but not always, your turnover), on a rolling 12 month basis, exceeds £85,000. Voluntary registration, however, can take place with turnover below this threshold.
The VAT registration application is required to be submitted within 30 days following the end of the month in which the threshold was breached. Businesses will then be registered from the first day of the second month.
Penalties will be applied by HMRC for late registration.
VAT registration may not be appealing to some SME businesses, especially for those B2C businesses who only sell to individual customers. Managing your turnover by restricting sales will delay registration – although, perhaps not a long term viable solution for many growing businesses.
Contact your local Whitings Office for more information.
Disclaimer - All information in this post was correct at time of writing.
