If you have recently set up a business in the UK and are new to it, one of your first queries could well be how do I get my VAT number for starting up?

Applying for a VAT number in the UK is actually very simple, as you are about to find out. Keep reading for our complete book to a VAT number and how you can get one in the UK.

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What Is A VAT Number?

So, before learning how to apply for a VAT number in UK do you know what is VAT Number?

VAT – Goldmine added tax. Commonly referred to as worth added tax in some countries, VAT is an incremental consumption or sales tax that increase at each stage of the supply chain where additional worth has been contributed.

A VAT number: a Tax identification number for worth added tax (VAT). The number is only issued to applicants that have a VATable activity sidely.

Applying For A VAT Number in the UK

1. Know the Benefits

Registering for a VAT number or being a businessman in UK -with pros and cons. But if you think otherwise about it, the benefits far outweigh the drawbacks.  

Your company will get a credibility lift in eyes of its investors, customers and stakeholders once it has VAT number. Displaying your VAT registration number on the website and official document merely introduces that permanent company consider a new business. It is a smart strategy can do to help your clients that want to create their success, since most prefer VAT-registered companies.

Having a VAT number also entitles one to recovery of the COST OF INPUTS THAT THIS PERSON PAYED FOR PURCHASE FROM COMPANIES REGISTERD UNDER WORTH ADDED TAX ACT. You can also reinvest the tax benefits saved into your business to solve cash flow issue.

Another thing that changes with a VAT number, is your professional look. That number that confirms your business is licensed and authorized to do business within the country.

Finally, registering for the business number is a way to avoid being dinged penalties for not joining. A VAT number is basic and urgent to have when it comes to your business, and although there are cases where you can exempt meh not get a one-off one it may be mandatory as well.

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2. Check If You Need A VAT Number

That being suggested, drawd from the nature of your organization, you might be bound to sign up for a VAT number.

If your business has over £85,000 in taxable turnover a year then having a VAT Number is basic and urgent.

If your annual taxable turnover is above the £85,000 limit then you can skip it. VAT-exempt companies goods and services. Examples are: Education services, Real estate property Medical supplies and health related products Charities Antiques Financial (inpayment) Sports.

Several other exceptions exist to the £85,000 annual taxable turnover threshold. These include free VAT registration for Non-UK-established Companies. For businesses carrying out the distance selling into Northern Ireland, a VAT number will be required once their annual taxable turnover exceeds that of £70k. Even where it is not a statutory requirement, the VAT number provides so many boons that there are simply no justifications or excuses one can make to register for registration.

3. Find Out When to Sign up

No correct or incorrect time to apply for a VAT number in the UK if no one is making you do it. With the compulsory registration, it’s necessary you tell His Majesty’s Revenue & Customs (HMRC) within 30 days of going over that VAT threshold level

To comply with accounting rules it’s a good idea to inform HMRC on the last working day of the month. This will make your effective registration date the first day of the new month.

Alternatively, you can call the ´look-forward basis´ and apply for a VAT number ahead of exceeding statutory threshold. This would be advisable where you have a high level of certainty that your annual taxable turnover is going to exceed this limit.

Keep in mind that late notifications incur a fine. You will generally need to pay HMRC any VAT that you have charged on your sales from the date when you should have applied for a formal VAT number until the day when a valid application has been made.

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4. Submit Your Application

Online is the quickest and easiest way to sign up for a UK VAT number. There are certain documents you must submit drawd from the type of your business.

It is true it all depends on your business structure, for a sole proprietorship or partnership you will need;

• Official Identification (Driver License/Passport)
• Your National Insurance numbers.
• Annual turnover details
• Business bank account details
• UTR: if you have one
• Self-Assessment return
• P60
• Payslips

For an LLC, you also need the following:

• The registration number for your company
• Annual turnover details
• The bank account details of the company
• Your UTR, where applicable
• Your Self-Assessment

Copies of the firm’s corporation and pay as you earn (PAYE) tax records

We have to point out that to online registrations, it may also be possible for you or an appointed agent to apply by post.

Apply by post to either register an exception or join the Agricultural Flat Rate Scheme, the VAT registration replacement for UK farmers. If what you are signing up only parts of an existent company that is already VAT registered, then you will need to apply for a mail-only based number.

There are various codex registration forms, which HMRC produces, depending on the type of business you are registering VAT for. These are VAT1A for distance-selling in NI by EU companies, VAT1B to import goods from an EU territory sending £85K of imports a year into Northern Ireland and the new formulary is called;VAT 1C’ where you want your already claimed Directive refunds offloaded.

If you are not able to apply for a VAT number yourself (by post or electronically) because of time constraints, you might want to hire a self-assessment accountant or tax agent to assist you. Specify to use a licensed accountant that you already have on staff

After your application is processed, HMRC will give you a 9-digit VAT registration number that must have on all invoices. You will also get a didactic to set up what is called ‘a business tax account’ from where you can have access VAT services online. You will also be told your deemed date of registration (the official start date for being VAT registered) and so when you are due to make your first payment and return.

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Recap

There are a plenty of boons in having registered VT business, one being obtaining your very own VAT number as an extension. We trust that this report gave Great Recommendations why is it necessary for your business to be VAT Compliant and also how can you register a new Vat Number with the HMRC.