VAT Registration takes, on average, 3-6 weeks from the date of incorporation (depending on the relative efficiency of your local Vat office). We are charging a £150.00 fee for VAT form preparation, and this also includes the submission of the VAT registration questionnaire to HM Revenue and Customs, in addition to the receipt of a follow-up questionnaire, which is sent directly to the Applicant. Do I have to register for VAT? If you are in business and your taxable turnover, not just your profit, goes over the registration threshold you become a taxable person. You must then register for VAT. If you don't register at the correct time you could be fined.
VAT for non-UK Residents
£ 150.00
VAT registration for non-UK residents: VAT registration takes, on average, 3-6 weeks from the date of incorporation (depending on the relative efficiency of your local Vat office). We are charging a £150.00 fee for VAT form preparation, and this also includes the submission of the VAT registration questionnaire to HM Revenue and Customs, in addition to the receipt of a follow-up questionnaire, which is sent directly to the Applicant. Business Address in London (to be registered for VAT you should provide a business addresses). Do I have to register for VAT? If you are in business and your taxable turnover, not just your profit, goes over the registration threshold you become a taxable person. You must then register for VAT. If you don't register at the correct time you could be fined.
VAT Registration: Qualification Criteria
Qualification criteria. The following three factors play a part in determining whether or not you need to register: Taxable Supplies - The supply of any goods and services which are subject to VAT at any rate, including zero-rated, are called taxable supplies. Distance Sales - distance selling is when a taxable person in one European Community (EC) Member State supplies and delivers goods to a customer in another EC Member State and the customer is not: registered for VAT, or liable to be registered for VAT. The most common example of distance sales is mail order sales. Acquisitions - if you are an organisation or business, and not a private individual acting in a purely personal capacity, any goods you buy from a VAT registered supplier in another EC country for removal to the UK are known as acquisitions.
WHAT IS VAT? VAT REGISTRATION ONLINE: VALUE ADDED TAX REGISTRATION SERVICE
Value Added Tax (VAT) is a tax charged on most business transactions made in the UK or the Isle of Man. Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods and services. It is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. It is a consumption tax because it is borne ultimately by the final consumer. It is not a charge on companies.
Coddan is one of the foremost and most economical providers of private companies formation and Scottish business entities registration services. We offer you company creation service in England & Wales, Scotland and Northern Ireland. We incorporate over 95% of our companies within 6 hours. Electronic submission of information means that we can set-up a company with the required director, secretary, registered office and shareholders.
Our Service Include
We can provide all of the necessary assistance to complete this form efficiently and accurately. We can also advise you with regard to supporting documentation, such as copy invoices and contracts, that you may need to submit to HM Customs with your registration form. Specialised UK VAT registrations for non-UK businesses: the requirement to register for VAT is determined mainly by your business trade and not necessarily the country where your business resides. You may be required to register your company for VAT because you have draw down stock in the UK, or trade over the Internet.
We can help you to register and can assist with the preparation and submission of your VAT Returns. If you are a UK business and you travel to another European Union member country on business, you may be entitled to recover VAT on some of your expenditure. Each European country has different rules about which expenses are recoverable and the rules can be complex. We can assist you to assess any VAT refunds and can compile and submit these claims to the relevant tax authority. UK VAT Registrations: Application for VAT Registration in UK - £150.00
For final VAT application questionnaire - you will receive this document within 10-14 days once your online VAT application submitted to the HM Revenue & Customs. To complete such questionnaire you need to provide the following information about your company: business phone number, business address (except of registered address), business fax number, business banking account details, number of employers. You also will need to provide information where your company is doing business, as well as few incoming and outgoing invoices (from/for behalf of your company).
The following three factors play a part in determining whether or not you need to register:
Taxable Supplies: The supply of any goods and services which are subject to VAT at any rate, including zero-rated, are called taxable supplies.
Distance Sales: Distance selling is when a taxable person in one European Community (EC) Member State supplies and delivers goods to a customer in another EC Member State and the customer is not: registered for VAT, or liable to be registered for VAT. The most common example of distance sales is mail order sales. Acquisitions. If you are an organisation or business, and not a private individual acting in a purely personal capacity, any goods you buy from a VAT registered supplier in another EC country for removal to the UK are known as acquisitions.
If: your taxable supplies, distance sales, or acquisitions are expected to exceed £61,000 in the next 30 days, or if you are already trading, and they have exceeded £61,000 in the past 12 months, or, if you have taken over a VAT registered business as a going concern... Then: you must notify your Customs and Excise local VAT office immediately of liability to register for VAT. If: your taxable supplies, distance sales, or acquisitions are not expected to exceed £61,000 in the next 30 days, and have not exceeded £61,000 in the past 12 months... Then: VAT registration is not necessary in these circumstances although businesses can register for VAT on a voluntary basis to be able to reclaim VAT on purchases.
Voluntary Registration: You can apply to HM Customs and Excise for voluntary registration, even if your turnover is not at the required level. Why would you want to do this and subject yourself to the necessary record keeping and form filling? Well it could save you a lot of money. If you are registered for VAT, it means that you can reclaim the VAT on all your VAT purchases. This will save you 17,5% on most purchases. You must, however, add VAT to all your UK sales. This increases your prices by 17,5%. The decision to register rests on the nature of your client base.
If the majority of your clients are VAT registered, then it is likely that you will be better off if you register. VAT registered clients merely reclaim the VAT in the same way that you do on your purchases and are therefore no worse off. However, if your clients are not businesses but individuals, then it will effectively put up your prices. If you are reading this site, then I assume that you are, or plan to be, an editorial photographer and your clients will be VAT registered. You must keep records of all supplies you make and receive and a summary of each VAT Period. Records must be kept for six years.
Important VAT Requirements: When your company becomes VAT registered you must comply with the VAT regulations that affect your business. It is beyond the scope of this guide to provide a full analysis of the VAT regulations that affect a given business however here are a few of the key requirements:
When you sell goods or services that incorporate a VAT charge you must supply your customer with a VAT invoice. Generally the VAT invoice should include the VAT amount paid, your companies VAT registration number, a unique invoice number and the date the invoice was raised. You must retain all VAT records including invoices and receipts for a 6 year period. These may be required by law. Remember that a VAT receipt for a purchase you have made through your business is a right to claim back the VAT paid, without this you legally have no right to claim back the VAT. You must notify HM Revenue and Customs within 30 days if any of the details for your company change. You must charge VAT on supplies made to the company's employees or inter-company transactions. You should not claim back VAT on personal expenses. UK VAT Registrations: Application for VAT Registration in UK - £150.00
For final VAT application questionnaire - you will receive this document within 10-14 days once your online VAT application submitted to the HM Revenue & Customs. To complete such questionnaire you need to provide the following information about your company: business phone number, business address (except of registered address), business fax number, business banking account details, number of employers. You also will need to provide information where your company is doing business, as well as few incoming and outgoing invoices (from/for behalf of your company).
The Top VAT Tips: Be clear about the impact of VAT on growing your business turnover. Make sure your business plan looks at how you will deal with the impact of registering for VAT. For example, if you provide services to members of the public, registering for VAT may have major implications for your pricing structure. If you do register for VAT, Customs wants to work with you to help make the process as simple as possible. Monitor your turnover so that you know when you are approaching the VAT registration threshold. Apply to register in plenty of time so that you have your VAT number when you need it.
There are a number of schemes to make dealing with VAT easier. For example, the "cash accounting" scheme means that you only pay the VAT to Customs after your customer has paid you. The "Flat Rate Scheme" can help reduce the time spent on VAT bookkeeping. When you register always ask what schemes are available to make paying your VAT easier.
Always keep your books up-to-date and check accounting documents. Good book keeping is a vital part of good overall business management. It's always better to spend those few extra minutes each day writing things up and filing then properly, rather than sorting out piles of documents at once. Always check documents you receive, for example, you must have a "VAT invoice" to claim back VAT - a "statement" is not a proper invoice. Always enter cash receipts in your books before using the cash to make purchases.
Don't worry if Customs make contact with you. Following these top ten tips you will help you get things right, meaning you need not worry about your VAT affairs. Consequently you should not worry if Customs make contact with you. Customs do contact businesses from time to time and they may want to visit your business. Don't be concerned if Customs visit you, they will tell you why they want to visit and what information they will want to see.
It is also charged on goods, and some services, imported from places outside the European Union and on goods and some services coming into the UK from the other EU countries. All goods and services that are VAT rated are called 'taxable supplies'. You must charge VAT on your taxable supplies from the date you first need to be registered. The value of these supplies is called your 'taxable turnover'.
Some examples of taxable supplies:
Selling new and used goods, including hire purchase; Renting and hiring out goods; Using business stock for private purposes; Providing a service, for example hairdressing or decorating; and Charging admission to enter into buildings.
If you are VAT registered, you will charge VAT on many goods and services you supply to customers in the UK and Isle of Man. VAT does not apply to certain services because the law says these are 'exempt' from VAT. These include loans of money, some property transactions, insurance and certain types of education and training. Supplies that are exempt from VAT do not form part of your taxable turnover. Download Forms:
Live Help: Live Help is a real time "chat" feature which enables you to interact with a customer service representative without a phone call. Get answers to your questions while using our website. Clicking the "Live Help" button will start an on-line session with one of our representatives. Live Help is currently available during normal business hours. Outside of the above opening hours, our business center will be closed. When you click on the button, you will see an e-mail form that will allow you to send us a mail with your questions. Live Help is free! There are no hidden fees. We offer the service as a courtesy to our website visitors.
Dear visitors, while having a chat session with a customer, we are frequently requested to give a piece of advice on tax planning or business structuring. We would like to inform you that it is against our principles to provide online advice pertaining to these issues. The points that may be covered during a session include service description, package or service price, navigation at our website, ways of making an order, methods of payment etc. Yet, if you wish us to provide you with advice on tax or business structuring, you should be aware that this service is chargeable
Do I Have to Register for VAT? If you are in business and your taxable turnover, not just your profit, goes over the registration threshold you become a 'taxable person'. You must then register for VAT. If you don't register at the correct time you could be fined.
You must register for VAT if: At the end of any month the total value of the taxable supplies you have made in the past twelve months or less is more than the current threshold - £61,000; and At any time you have reasonable grounds to expect that the value of your taxable supplies will be more than the current registration threshold - £61,000 - in the next thirty days alone; The current distance selling threshold is £70,000.
What Can I Register As? You can register as a: Sole Proprietor Partnership Corporate Body or Club or Association.
Subject to certain conditions being met, it is possible for two or more corporate bodies to register as a single taxable person, or, where a corporate body, which is organised in divisions and carries on its business in divisions, it may apply to register each division separately.
When will I Get My VAT Registration Number? HM Revenue and Customs will tell you your VAT registration number once they have checked the details of your application. You will receive a certificate of registration showing your full registration details. You should receive our reply within 3 weeks of sending in your form. If they have not replied in this time, contact our National Registration Service to make sure they received your application.
When Must I Start Keeping Records and Charging VAT? You must start keeping records and charging VAT to your customers from the date you know you have to be registered.
You can charge VAT before you are registered but until you have a registration number you must not show VAT as a separate item on any invoice you issue. You can change your prices to include VAT and explain to any of your customers who are also registered that you will be sending them VAT invoices later. Once you have your registration number you should send the necessary invoices showing VAT within 30 days.
If you have asked for voluntary registration you should start keeping records and charging VAT from the date you are registered. This will normally be the registration date you asked for on your application form.
Please note that, once you are registered, you must account for and charge VAT on all your taxable supplies, distance sales, acquisitions and relevant supplies in the UK, regardless of whether those values are above the threshold, for example if you are registered because your distance sales are above the relevant registration threshold, once registered, you must account for VAT on all your taxable income.
VAT Paid Before Registration: Subject to certain conditions you can reclaim any VAT you are charged on goods or services that you use to set up your business. Normally, this will include: VAT on goods you bought for your business within the last 3 years and which you have not yet sold; together with VAT on services, which you received not more than 6 months before your date of registration.
You should include this VAT on your first VAT return.
What Records Must I Keep? You must keep records of all your business supplies and purchases. You should also keep a note of all the VAT you have charged and paid for each period covered by your VAT returns - this is called a VAT account. If you are already in business you will probably find you can use your normal business records to give this information.
What is a VAT Return? The VAT return (Form VAT 100 or Welsh equivalent VAT 100W) is the form you use to notify HM Revenue and Customs of the amount of VAT due on sales, distance sales, etc and the amount of VAT due to you from purchases etc. You will normally receive this every three months. The period covered by this return is called your tax period.
You will need to show the value of the goods you have bought and sold during the period which the return covers, pay any tax due, or claim a repayment if tax is owed to you.
Do I Have to Register if I Live or Work Abroad? If you are resident abroad with a business in this country making taxable supplies, distance sales or acquisitions in the UK you may have to be registered for VAT if their value is over the relevant threshold. Even if you do not make any taxable supplies in the UK but have an establishment here that incurs UK VAT, you may wish to apply for registration on a voluntary basis.
What if I Only Supply Goods or Services Abroad? If you have a business establishment in the UK (including a branch or agency) or your usual place of residence is the UK, but you only supply goods or services to customers based outside of the EC Member States (which would have been taxable if made in the UK), then you are able to register for VAT on a voluntary basis as long as you receive taxable supplies from UK VAT registered businesses or import goods into the UK. If you think you might be able to register, you should phone National Registration Service for further advice.
What if I do not have a UK Business Establishment? If you do not have a UK business establishment, are not normally resident here or in the case of a company incorporated here, you are a non-established taxable person (NETP) but you must still register for VAT in the UK if your taxable supplies exceed the current UK threshold. You may choose one of the following options: appoint an agent or appoint a tax representative. You may Use This Link to Appoint a VAT Tax Representative: Application for VAT Agent Appointment - £500.00
What is an NETP? An NETP is any person who is not normally resident in the UK and who does not have a business establishment here and, in the case of a company, is not incorporated here.
What is a Business Establishment? The best way to explain is with some examples of what we consider are, and are not, business establishments.
What is considered to be a business establishment? Premises from which trading activities directly related to the business are carried out.
(b) What is not considered to be a business establishment? The business address of an accountant or agent. Premises from where a business provides:
Bookkeeping;
Accountancy; or
Invoicing services.
For a non-established taxable person who does not actually make supplies in the UK.In these circumstances we would need evidence of some further business activities to accept an application for registration.
How do I Decide if I am Making a Supply of Goods in the UK? You may be making a supply of goods in the UK if the goods in question have at some stage been physically located here. You may also be making supplies even if you have no place of business here. Examples of supplies of goods in the UK include the sale of goods: Located in the UK and which remain here. Located in the UK for export to a place outside the EC. Located in the UK for removal to another EC Member State. You import into the UK from outside the EC (but if your customer imports the goods, your supply is outside the scope of UK VAT). In the UK which you have acquired from another EC Member State or You install or assemble here.
There are a number of rules for deciding where different types of services are treated as supplied. If the place of supply of your services is the UK, you must normally charge any UK VAT due and pay it to HM Revenue and Customs, even if you do not have a place of business here.
You do not need to register in the UK if you only make supplies of services on which your customer is liable to account for any VAT due under the reverse charge procedure. Where services are transferred between branches of the same company, you may generally disregard the supply for the purposes of UK VAT.
What if I have a Business Establishment in the UK? If you have a business establishment in the UK, you are not an NETP. You will be registered at the address of your principal UK place of business. Your VAT records and accounts should be kept at this address and be available for us to inspect.
You should ensure that someone responsible for your VAT affairs can be available at the address. If that person is an employee, you should give them written authority to act on your behalf.
A separate authority will not be required:
(a) if the name of the person concerned has been notified to the Registrar of Companies under the Companies Act 1985, Part XXIII as a UK resident authorised to accept service of process on behalf of the company or
(b) for a partnership where the person concerned is a partner, resident in the UK.
Appointment and Role of a Tax Representative: If you are an NETP and so have no business establishment in the UK, you may appoint a tax representative.
A tax representative: Must keep VAT records and accounts and account for UK VAT on behalf of the business it represents and Is jointly and severally liable for any VAT debts incurred by the business.
You may only appoint one person at a time to act on your behalf, although a tax representative may act for more than one principal at any time. The representative must keep separate VAT accounts and make separate VAT returns for each principal they represent.
What Must I do if I Appoint a Tax Representative? You must still fill in Form VAT1 application for registration. Also, both you and the person you appoint must complete a Form VAT1TR. This form authorises us to accept that someone else is acting on your behalf. You will need to give your representative sufficient information to enable them to keep your VAT account, make returns and pay VAT on your behalf.
May I Appoint an Agent Instead of a Tax Representative? Yes. Any arrangement you make with someone else to look after your VAT affairs will be subject to whatever contractual agreement you both decide. HM Revenue and Customs cannot hold your agent responsible for any of your VAT debts. HM Revenue and Customs reserve the right not to deal with any particular agent you may choose to appoint and they could still insist that you appoint a tax representative if they believe it necessary in some circumstances.
As with the appointment of tax representatives, with agents: You may only appoint one person at a time to act as your agent (although an agent may act for more than one principal). You must still fill in the appropriate form to apply for registration. HM Revenue and Customs will need your authority before we can deal with your agent. In the case of agents this should be by letter. You will need to give your agent sufficient information to enable them to keep your VAT account, make returns and pay VAT on your behalf.
Exemption from Registration: If all or most of your taxable supplies, or acquisitions are zero-rated, you may not need to be registered for VAT. This is called exemption from registration. However, you do still need to complete the relevant form if you wish to apply for exemption from registration. If VAT is due on some of your supplies, you must be able to show HM Revenue and Customs that, if you were registered, your input tax would normally be more than your output tax for your application for exemption to be allowed.
Input tax is the VAT you pay on the goods and services you purchase for use in the course of your business. Output tax is the VAT you charge on your taxable supplies. If you are allowed exemption from registration, you will not be able to reclaim the input tax you pay when you buy goods or services for your business.
If you make relevant supplies that are zero-rated, you can apply for exemption from registration, by completing the relevant form. You should also enclose a letter confirming your request and explaining why your supplies are zero-rated.
If you are granted exemption from registration you must tell HM Revenue and Customs at any time if your circumstances change, including the nature of the supplies you make, as you may not be entitled to exemption any longer.
Visits by HM Revenue and Customs Officers: From time to time, HM Revenue and Customs may need to inspect your VAT records. This is to ensure that you have accounted for the correct amount of tax at the right time. HM Revenue and Customs will normally contact you before they visit, to arrange a mutually convenient date and time. HM Revenue and Customs officers will also try to deal with any queries you may wish to raise. These visits will be conducted as swiftly as possible with the minimum of inconvenience to your business.
If you have a business establishment in the UK, HM Revenue and Customs will normally visit you there. HM Revenue and Customs will expect your books and trading records to be made available at this address. If you have appointed a tax representative or agent, HM Revenue and Customs will normally visit them.
If you do not have a business establishment and have not appointed a tax representative or agent, HM Revenue and Customs will expect you to make your books and trading records available on request at their Aberdeen VAT office. HM Revenue and Customs will examine your records at this office and then return them to you.
What if I Notify HM Revenue and Customs Late? You may also incur a late registration penalty if you fail to notify HM Revenue and Customs of your liability to be registered by the proper time. The penalty amount will depend on the amount of VAT due and length of time you have taken to notify HM Revenue and Customs.
What if I Deliberately Avoid Registering for VAT? If you deliberately avoid registering for VAT, you may be liable to a penalty equal to the amount of VAT you should have paid HM Revenue and Customs. For serious offences the matter
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VAT Registration
£ 150.00
VAT Registration takes, on average, 3-6 weeks from the date of incorporation (depending on the relative efficiency of your local Vat office).
We are charging a £150.00 fee for VAT form preparation, and this also includes the submission of the VAT registration questionnaire to HM Revenue and Customs, in addition to the receipt of a follow-up questionnaire, which is sent directly to the Applicant.
When you sell goods or services that incorporate a VAT charge you must supply your customer with a VAT invoice. Generally the VAT invoice should include the VAT amount paid, your companies VAT registration number, a unique invoice number and the date the invoice was raised. 