White Collar Consultants Limited

So much more than tax

01952 780 220

accounts@wcc-ltd.co.uk

V.A.T. Definition: Very Arduous Tax

05/08/2015

In general business owners are scared of VAT.

There are a number of us that are either registered when there is no need to be or are registered on the wrong scheme.

Below is my crib sheet for VAT and I hope this helps;

REGISTRARTION

This can be voluntary at any stage of your business life cycle but becomes compulsory when the following happens:

  • Your annual turnover is expected to exceed £82000
  • You import more than £82000 worth of goods from the EU

DEREGISTRATION

Yes it is possible and in some cases it would be advisable however your annual turnover will need to drop below £80000. It is also not advised to deregister if you expect your turnover to exceed the registration threshold within the nearby future. If you meet the deregistration criteria you can submit your request for deregistration by completing a VAT7 form which you obtain via your gateway login (The same login you use to submit your VAT returns)

WHAT SCHEME

There are so many VAT schemes out there namely; Cash, Annual, Global, Marginal, Standard, Flat Rate

Each of the above has their own pros and cons as well as a list of eligibility criteria. In many cases been on the wrong VAT scheme can have an adverse effect on your cashflow, it is therefore advised that before you register for VAT seek the advice of a professional.

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