Should you register your business for VAT?
                     CHEYLESMORE 
ACCOUNTANTS
Should you register your 
business for VAT?
SHOULD YOU REGISTER YOUR BUSINESS FOR 
VAT?
• Many business owners 
generally misunderstand 
VAT. While some are 
obliged to register for VAT, 
while others can opt to do 
so of their own accord. So, 
why might registering for 
VAT be a good idea, and 
when should you register?
WHAT IS VAT?
• VAT stands for value-added 
tax and it adds to the cost of 
nearly everything you buy in 
the UK. If you have a 
business, you may be 
required to register for and 
collect VAT. So it is considered 
a good idea to get a handle 
on what VAT is and how it 
works.
HOW CAN VAT AFFECT MY BUSINESS?
•  You will need to send that extra money to HMRC.
•  You may require to add VAT to your prices.
•  You can request for claim back any VAT that you’re owed on business 
supplies.
How much is VAT?
• 20% VAT rate for most of the goods and services.
• 5% is the VAT rate to some energy, healthy, heating, and protective 
products and services.
• 0% is applied to a comprehensive range of products and services to do 
with kid’s clothing, health, building, and publishing.
WHEN DO YOU HAVE TO REGISTER FOR 
VAT?
• When to register?
• You must go for VAT 
registration if your VAT 
taxable turnover goes over 
£85,000), or you know that 
it will. Your total VAT 
taxable revenue  is the 
total of everything sold 
that is not VAT exempt. You 
can also register 
voluntarily.
COMPULSORY REGISTRATION
•  You must register for VAT:
•  If you assume that your VAT payable revenue is going to be more than 
£85,000 in the next 30-day period.
• If your business had a VAT payable turnover of more than £85,000 for last 
12 months.
• You may require to register in some other possible cases, depending on 
the kinds of goods or services you sell and where you sell them.
• If you will exceed the VAT threshold in the next 30-day period.
You have to do registration by the end of that 30-day period. Your effective 
due date of registration is the date you expected, not the date your turnover 
went over the threshold.
WHAT HAPPENS IF YOU FAIL FOR 
VAT REGISTRATION?
• In some cases, if you fail for VAT register at the given 
appropriate duration, you could be bound for a late registration 
penalty charge. Ignorance is not an acceptable case to prevent 
penalty charges. The longer the duration that you have failed 
for VAT registration, the greater the charges will be. Moreover, 
a penalty could get canceled or reduced if you would be able to 
provide the proof of genuine reasons which prevented you from 
registration on time. 
CHEYLESMORE ACCOUNTANTS
• Ready for 
VAT register in Coven
try
? We’ll take you through 
each step, from what 
you need before you 
register to choose your 
accounting scheme and 
filing frequency.
CONTACT US
• Contact Cheylesmore Accountants
• [email protected]
• Phone: 02476017778
• Address: 6 The Mount Chyelesmore,
 Coventry, CV3 5GU
• Website: https://www.cheylesmore.com
THANKS FOR 
WATCHING
https://www.cheylesmore.com