The end of the financial year is when many businesses will be looking back at their business sales to see how well they have done. They will hopefully find that they’ve been successful growing the turnover of the business.
However, remember that HMRC may require you to register for VAT if your historic sales turnover has exceeded the threshold, currently £85,000, over the last 12 months.
You might also have to register for, and submit, Making Tax Digital for VAT returns.
However, not everything about VAT is bad. If your customers are mainly VAT registered themselves, then they’ll happily claim back any VAT you charge them from HMRC, and you’ll be able to reclaim the VAT paid on your purchases, including some of the VAT you’ve paid over the last 4 years – a very welcome cash boost!
If you would like help or advice for your business on Vat and Making Tax Digital, including registration, and preparing and submitting returns, then please get in touch with me. I’ll be pleased to provide some free guidance to DBFY members.
Pennine Accounting Limited