Registering For VAT

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Am I legally obliged to register for VAT?

You are not legally obliged to register for VAT unless your turnover exceeds £81,000.

What if my earnings are less than £81,000?

You are under no obligation to register for VAT but you will not be able to claim back VAT on purchases.

How do I become VAT registered?

Registering for VAT is a simple procedure and can be done by post or on the HM Revenue Customs website by following this link

Advantages and disadvantages of registering for VAT

BENEFITS of registering for VAT

DRAWBACKS of registering for VAT

Can claim back VAT on purchases

Adds VAT to all goods you sell

Helps your customers claim back VAT

Unpaid tax collector for HMRC

Only have to file one VAT return per year

Makes your prices more expensive

Gives your business a professional image

Requires additional admin

Further information on VAT

VAT in the UK increased on the 1st January 2011 from 17.5 % to 20 %.