This months tax tips newsletter was our most “clicked” newsletter to date! However, one article in particular seemed to get most the most attention. A huge number of our subscribers clicked a link in the “Question & Answer” section. Due to the popularity of the question we have decided to share it with everyone below;
The question was;
I generally invoice about £5,000 per month, some £60,000 per year, so my business is not yet VAT registered. However, from 1 April a new customer will provide an additional £2,000 of sales per month. When exactly will I have to register for VAT?
The answer is;
You currently have a margin of £13,000 between your regular sales and the new VAT registration threshold of £73,000 (from 1 April 2011). Your new income will fill that margin in 7 months. If your regular sales remain constant your turnover for the past 12 months will exceed £73,000 in mid October 2011. You will need to register for VAT by 30 November 2011. As the VAT registration process can take at least a month, you should send in your application for VAT registration (online or in paper form) as soon as you realise your sales have exceeded £73,000. On that form be careful to state the date from which you become liable to register for VAT, even if that is some weeks in advance.
You can also visit the HMRC website for more information by clicking here
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