WHAT IS VAT1 FORM | The Accountancy Solutions
WHAT IS VAT1 FORM
If you’re starting a new business as self-employed, sole trader, partnership or limited company or just want to registe your existing business for VAT or taking over an existing running business and want to register for VAT as new entity, you must notify HMRC on VAT1 form.
REGISTERING FOR VAT
You can register using either online service or send VAT1 form to HMRC by post. You are liable to be register for VAT when your turnover exceeds the threshold set for that year. There are different forms for registration for some special trades.
VAT REGISTRATION FOR DISTANCE SELLING AND SPECIAL TRADES
If you are involved in distance selling you must use form VAT 1A. Similarly, if you need Vat registration for acquisitions of goods from other EU states and bring those goods into the UK you must file VAT 1B form. For more details you can contact us for FREE AND NO OBLIGATION ADVICE.
As stated, standard VAT rate is 20%. Other schemes may be applicable to your business if certain conditions are met. You can be registered for Flat Rate Scheme and pay a flat rate on gross turnover and do not claim any input tax. Most business which have turnover less than £150,000 fall under flat rate scheme. There are rules and tests to determine flat rate of VAT applicable to the business.
PENALTIES FOR NOT REGISTERING FOR VAT
If you don’t register for VAT when you exceed the turnover threshold in the last 12 months of trading, or you expect turnover to exceed the figure in the next 30 days alone and don’t register, you will still have to pay the VAT which is due plus penalties in addition. Penalties can vary as HMRC frequently update its guidance.
PROFESSIONAL ADVICE FOR VAT1 FORM
If you have started a business or need to know more about how to register for VAT or having difficulty in filling the VAT1 form. Call us or just fill in the form below and we will reply to your questions.