VAT Registration Explained By A Real Accountant - Value Added Tax UK

🔴 VAT registration is a question all small business owners, contractors and freelancers will face in their business journey. The age old question of "shall I register for VAT and when is the right time for VAT registration?" remains pertinent. Unfortunately there is no one size fits all answer. Each business will have different needs in regards to value added tax, and in this video, we'll go over the key things you need to consider as well as the main benefits of voluntarily registering for VAT if your turnover is underneath the current VAT Threshold.
Your key objective with regards to VAT registration is to evaluate whether the numbers work for your business and make an informed (and not a linear) decision.

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⏱️ Time Stamps:
0:58 - Making an Informed Decision
2:08 -The Benefits of Voluntary VAT Registration
6:33 - Getting a VAT Evaluation

When it comes to voluntarily registering for VAT, the 4 KEY benefits we will cover are:

1 - You Can Reclaim Input VAT on Expenses Incurred
2 - The Flat Rate Scheme
3 - Pre-registration VAT
4 - Positioning & Prestige

There are definitely advantages of voluntarily registering for VAT before the annual threshold is reached, and having the opinion that just because your turnover isn't at the threshold you don't need to register could end up costing you thousands of pounds in unnecessarily paid VAT. You owe it to yourself as a business owner to make an informed decision on whether or not registering for VAT will be beneficial to your business journey.

★☆★ OUR MISSION ★☆★
Me & my team are dedicated to helping and empowering YOU to 'Know Your Numbers' so you can make calculated and informed decisions in your business, company and personal finances towards your definition of success.

★☆★ OUR PHILOSOPHY ★☆★
If you take care of your numbers (finances), your numbers will take care of you, your family and those you value the most.

🔴 DISCLAIMER
Our videos are for general guidance, education and empowerment in helping you understand accounting, tax and your numbers. They in no way constitute specific advice to your specific circumstances. Me & my team would be delighted to help you with your specific queries or accounting requirements through a formal engagement.

[tonydCFO]

I often get faced with the statement 'but my business has not or will not reach the VAT registration threshold (currently £85, 000 in 2020-21) so therefore I will not register for VAT. Such a linear way of approaching the VAT question is futile. What you need to ask yourself is 'why should I register for VAT and how can I make the numbers work for my business'. Let me know in the comments below if you agree or disagree.

[BurnBabylon_Selecta]

Literally told me what I needed to know about the importance for prestige. We haven't made a single pound yet but in our field appearance is extremely important.

[alichampion]

Hi, thank you for this video. For a US LLC, is it possible (legal) to do the VAT return my self online? or it is mandatory to ask a UK fiscal representative agent to do it? Thank you!

[AmieDibba]

in order to claim a reclaim for up to 4 years ago, where it says "From what date do you want the business to be registered?" do I need to backdate up to the 4 years or is it that I can reclaim up to 4 years regardless of the date of registration?

Also, if you are a small business considering voluntary registration and you are looking to reclaim VAT, does it make sense to voluntarily register if there isn't much to reclaim (if the reclaim option is a key driver in registration), if so what amount would you say is just not worth it?

Thanks!!

[PShrzta]

While taking the credit of Pre-registration Input Tax, do we need to change the account already prepared and submitted to HMRC?

[catiapontes-kicks]

Thank you for this, it's brilliant! I am yet to find information about VAT so concisely and well explained. Any Videos on how to register for VAT yet? That would be perfect for me right this moment. Thought I would ask

[shaikrahiluddin]

Query - Need Help!
1) Which address should we add in - A ship from address?
2) Why and when should we use SPD?

[swiftgames]

I’m nearly at the bracket so I’m going to have to go vat reg. it’s a bit of a grey area to at which point you have to register for eg: £5 before the bracket £10k before etc ?

[justahuman]

I am sole trader from last 4 years and i have purchased iphone from Vodafone there was an option buy as sole trader will exclude vat so can i purchase it as sole trader and will it not gonna affect me any bad way. I am self employed delivery driver i use my own vehicle own mobile for work i was needed a good battery phone for work as i work longer than normal so would it be okay to purchase that without paying vat? Kindly clear this doubts thank you

[mlee]

Something I want to know when do forms quarter yearly is it write for that quarter or like that year so far (like if 2nd quarter you say what 1st and 2nd together is or just 2nd)

Mainly trying to research to prepare for working

[marynarkw]

Hi, is there an obligation to register for VAT if turnover of 85K is generated  but from overseas sales ( USA).
In other words, do overseas sales count towards VAT registration threshold (£85, 000)?

[ejaragonvillanueva]

How to make a VAT to withdraw a profit

[SelfpredictionCombat]

if I claim back on 4 years worth of VAT do I have to pay VAT on those same earnings

[LifeOfFahimFaysal]

I am planning to form a limited company in the UK (small business). I might make little to no profit from the business at this stage and I'm planning to sell digital products i.e. courses, ebook, etc. Do I have to register for VAT after forming the company?

[agitibrahim]

I am opening a barbershop, the property is already VAT registered. That means I am going to be paying VAT for the rent . Is that mean I am gonna have to charge my costumer VAT too ? Or would I be better off without VAT ?

[RajNRI]

Thanks for informative videos

Please advise can a UK limited company receive remittance say as a gift from parents in India in inr to gbp via online wired transfer and what are its tax implications compared to receiving money as a gift to a individual in UK ?
Ideally this money will then be used for 1st property purchase in the UK

If you can make a video will be brilliant and useful to hopefully few people 😊🙏
Many thanks

[ikbal]

A person residing in Qatar and the founder of a ltd company in UK and working as a seller on Amazon UK
- Do I have to pay the vat from the beginning of the sale, or do I have to reach the amount of 85, 000 pounds of income? ..waiting for your answer plz

[bashs]

There's no benefits registering for vat