A business will either normally be VAT registered on a compulsory basis, registered on a voluntary basis or not VAT registered. All businesses initially will not be VAT registered when they are set up or incorporated.
A business will need to become VAT registered on a compulsory basis if either:
- Taxable turnover has exceeded £81,000 over the past twelve months or shorter historical period.
- Taxable turnover is expected to exceed £81,000 in the next thirty days alone.
This threshold is correct as at August 2014. The threshold is increased on an annual basis.
If a business has not reached this level, registration is still possible on a voluntary basis as long as the business is making taxable supplies or is intending to do so (for example a company currently carrying out research).
For more information on VAT, contact Wisteria’s tax team on 020 8429 9245.
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