New online VAT registration tool
A new online tool has been launched to help businesses understand the impact of being VAT registered. What’s the full story?
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Accounting for VAT if there is no cash payment
Your business has submitted repayment returns for the last two quarters and you are concerned that you might have underpaid output tax on some supplies where no money has changed hands. Are your concerns justified?
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Treatment of distributions under review
The government has launched a consultation on modernising the tax treatment of distributions and repayments of capital by companies. The proposals could affect the distinction between dividends taxed as income and capital payments subject to CGT. What changes are being considered?
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Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
The latest interactive tool has been introduced by HMRC in response to feedback from small businesses. The new tool can estimate what registering for VAT could mean for a business. You must register for VAT if:
- total taxable turnover is over £90,000 (previously £85,000), or
- you expect your turnover to go over the VAT threshold in the next 30 days, or
- you and your business are based abroad, and you supply any goods or services to the UK (or expect to in the next 30 days).
Businesses can also register for VAT voluntarily if the above criteria aren’t met. VAT registered business charge VAT on eligible sales and reclaim it on eligible purchases, which can create an overall refund for some businesses. If you may need to register for VAT, or would like to understand whether it would be beneficial you can use the tool to estimate how much VAT might be owed or reclaimed by your business once you become VAT registered.
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