You do not need VAT registration after forming a UK limited company if your annual turnover is below £85,000. However, you can choose to do so voluntarily if you meet the criteria. There may be some benefits of registering for VAT, such as reclaiming VAT on your purchases, appearing more professional and credible to your customers, and accessing the EU market. However, there are also some drawbacks, such as having to charge VAT on your sales, file regular VAT returns, and keep accurate records.
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The decision for registering VAT depends on your business circumstances and preferences. You should weigh the pros and cons carefully and consult a professional accountant or tax adviser if you need more guidance. If you decide to register for VAT, you can use our online VAT registration service to complete the process easily and quickly.
We will handle the paperwork and forms for you and obtain your VAT registration certificate within 14 days of application.
Also read: How to open UK bank account online?
What is the VAT rate in the UK?
The VAT rate in the UK is the percentage of value-added tax that is charged on certain goods and services.
• The standard rate of VAT is 20%. This VAT rate applies to most goods and services, such as clothing, electronics, furniture, catering, alcoholic drinks, etc.
• The reduced rate of VAT is 5%. This VAT rate applies to some goods and services, such as children's car seats, home energy, sanitary products, etc.
• The zero rate of VAT is 0%. This VAT rate applies to zero-rated goods and services, such as most food, books, newspapers, children's clothes, etc.
Some goods and services are exempt from VAT or outside the scope of the UK VAT system. These include postage stamps, financial and property transactions, education and health services, etc.
Login to your existing account or register a new if you don't have one. Once you are registered.
Registered accounts gets these benefits:
- Buy various types of services