If your company supplies products or services in the UK and your turnover of taxable goods is more than the £77,000 threshold, you have to register for VAT. Registration is compulsory also in the case you are taking over from someone else a VAT-registered business.
Your VAT Taxable Turnover
Unless the goods/services you supply are exempt from VAT, their value is included in your taxable turnover. Not only does it include sales, but also goods/services you barter/exchange. One thing you should never do is the so-called “Artificial Separation”, namely the attempt to avoid VAT registration by separating your business activities to reduce the final turnover.
Target Accounting provides experienced financial accountants based in London who can help new companies with their VAT registration and all HMRC related paperwork. Our tax advisers and specialists will also help your business find a long-term strategy to optimize tax expenses.