What are the Benefits of VAT Registration?
A lot of our clients ask us about VAT, particularly whether it’s worthwhile registering for it. When a business hits the £85,000 taxable turnover threshold, it is legally required to become VAT registered, simple as that. However, you can actually register at any time before then, even if you don’t think your business will ever reach the threshold.
You may wonder why anyone would register for VAT earlier than required, so here a few benefits that come with it:
When your business is VAT registered, you can claim VAT back on a wide variety of expenses. These include things like office furniture and IT equipment, business-related travel costs, and yes, even the services provided by TreyBridge Accountants.
You can also claim VAT on eligible goods and services bought within the last four years, providing you were in business during that time, they were purchased for the business and are still in use, and you have proof of purchase (printed or digital).
Once registered, you’ll receive a VAT number. This can boost the reputation of your business, as many large companies only outsource to providers that are registered for VAT.
Registering early also sets the scene for future business growth. If you think you’ll hit £85,000 soon enough, we recommend that you register for VAT now so that you don’t accidentally surpass the threshold and receive an unexpected bill from HMRC.
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Tagged as: Tax & Expenses
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