Most businesses in the UK with annual turnover in excess of the VAT Registration Limit will need to be registered for VAT and should submit VAT Returns to HM Revenue & Customs on a regular basis.
Certain types of business, such as those making exempt supplies, are not eligible to register for VAT, irrespective of turnover. This means that those businesses cannot recover any VAT paid on purchases or expenses. Other types of business may be entitled to receive regular refunds of VAT and it may therefore be beneficial to register, irrespective of level of turnover.
You may not need to register immediately, but it may be advantageous to do so, particularly if you are purchasing substantial assets or selling to VAT registered businesses.
There are exemptions available to businesses which only exceed the threshold temporarily.
Companies that form part of a group may register on a group basis. There are particular issues relevant to this area and careful consideration is required.
It should be noted that there are penalties for failure to register when you are obliged to do so.
If you require advice or would like to discuss how we might assist you, please contact us.