Online VAT Registration

Online VAT Registration FAQ

VAT Registration Questions

1. What is VAT Registration?
2. What is a VAT Number?
3. Should I register my company for VAT?
4. What are the rates of VAT?
5. Are there any benefits to voluntary VAT registration?
6. Does the Company Warehouse provide a VAT registration Service?
7. What are the benefits of Online VAT Registration?
8. How much does VAT registration Cost?
9. Can I not register for VAT myself?
10. Is the VAT registration service tax deductible?
11. Can I reclaim for VAT on goods I purchased before VAT registration?

Answers

1. What is VAT Registration?
   Simply, VAT registration is the process of registering your company with the inland revenue (HM Revenue & Customs). VAT registration allows you to recoup VAT that you have charged. Any business can carry out a VAT registration, it is not restricted to limited companies. “Business” is defined as any activity whereby you are getting paid for goods or services. Being a business carrying out such activity, you are necessarily charging your customers VAT. You are collecting this money on behalf of HMRC and you will be expected to pay it to them on the appropriate date.
   
   
2. What is a VAT Number?
   A VAT number is the registration number you will be issued upon correctly registering your business for VAT with HMRC. It should be displayed on your VAT invoices and receipts.
   
   
3. Should I register my company for VAT?
   This depends on your circumstances. Currently there is a threshold set at £68,000 (£70,000 from 1 April 2010), where if you will have a turnover exceeding that in 12 months of trading then you are required to carry out a VAT registration. You can voluntarily register for VAT if your earnings will be below that threshold and there are some benefits to doing so.
   
   
4. What are the rates of VAT?
   From January this year, the standard rate of VAT returned to 17.5%. A list of the rates of vat and what they mean can be seen in our blog article VAT Registration.
   
   
5. Are there any benefits to voluntary VAT registration?
   Voluntarily registering your company for VAT, even when you are not required to do so can be beneficial to a company, allowing it to claim back VAT on purchases, as well as charge it on sales. This can be especially of benefit to companies who are selling one sort of VAT Rated product while buying another. So if you are selling zero rated, but buying standard rate, you can actually receive money back from the HMRC.
   
   
6. Does the Company Warehouse provide a VAT registration Service?
   Yes. Our low cost VAT Registration service is straightforward and easy to use. We have been highly praised by HMRC both for the levels of VAT registrations we have carried out on behalf of companies and the quality of our registrations. Because of our knowledge and experience, VAT registration through us is error free meaning the process is not slowed by the common errors and omissions that occur when people file their registrations for themselves.
   
   
7. What are the benefits of Online VAT Registration?
   Online VAT registration makes the process much easier. We have an agency account with HMRC and carry out the registration on your behalf. All you have to do is fill out our online registration form, complete a questionnaire and we do the rest of the work for you.
   
   
8. How much does VAT registration Cost?
   Costs vary, the current cost can be seen on our VAT registration page.
   
   
9. Can I not register for VAT myself?
   Yes, you can. However, because of the complex nature of the forms, the jargon used and more most people will find our service more appropriate. HMRC statistics show that around 30% of applications received from individuals are prone to error or omission which slows the process and means that you will not be properly VAT registered.
   
   
10. Is the VAT registration service tax deductible?
    Yes. The good news is our VAT registration service is 100% tax deductible.
    
    
11. Can I reclaim for VAT on goods I purchased before VAT registration?
    Yes. As long as you have appropriate VAT invoices and receipts you can reclaim for VAT you have paid on goods or services that you purchased for the business up to 3 years before VAT registration.