VAT Returns
As of April 2011, once your turneover reaches £73,000 or more it is a legal requirement that you become registered for VAT, however you may choose to voluntarily register for VAT before your turnover reaches this figure.
If your business is registered for VAT you will need to complete a VAT Return and send it to HM Revenue & Customs, usually on a quarterly basis (i.e. every 3 months) along with any payment that is due.
N.B. As of April 2010 if your annual turnover is more than £100,000 it will be compulsory for you to file your VAT return online and make payment electronically.
The Book Monitor can calculate how much VAT your business is due to pay and complete the VAT returns on your behalf.
Frequently Asked Questions:
Q: What is the standard rate of VAT?
A: The standard rate of VAT, as of 4 January 2011, is currently 20%. From 1 January 2010 to 3 January 2011 the standard rate of VAT was 17.5%. 1 December 2008 to 31 December 2009 the standard rate of VAT was temporarily reduced to 15%. Before 1 December 2008 the standard rate of VAT was 17.5%.
Q: When is it compulsory for me to register for VAT?
A: As of April 2011, once your turnover has exceeded £73,000 in the previous 12 months you must legally register for VAT.
Q: Can I register for VAT before my turnover has reached £73,000?
A: Yes, you can voluntarily register for VAT at any time. It only becomes compulsory to register for VAT once your turnover has exceeded £70,000.
Q: Can I deregister for VAT?
A: If you decide you no longer want to be VAT registered, for example if you are closing down your business, you can only deregister once your turnover has dropped below £71,000 in the previous 12 months or when your business is finally closed.