A Guide: Steps to Online VAT Registration

While the company grows, something you should know about is Value Added Tax. Getting VAT and what it implies for your business, just as being sure about the VAT edge, is significant. If VAT enrolment is on the cards for your business, you can do online vat registration.

VAT (Value added tax) refers to consumption tax duty on what individuals consume through products and enterprises at the end of the day. It's a circuitous assessment since VAT enlisted organizations, whose available turnover is in the abundance of the VAT limit (at present £85,000), gather it in the interest of the public authority.

When should your business register for VAT?

If you have asked yourself the question, "Do I have to register for VAT?" Here is what you need to know. If your company's turnover has reached £ 85,000 or more over the last 12 months, or if it is likely to happen in the 2019/20 tax year, you will need to do registeration for VAT.

Benefits of being VAT registered

One of the main advantages of being VAT registered is reclaiming VAT incurred on start-up costs. Suppose you are opening a cafe or starting a business of professional services and that you owe. You can recover the VAT element of this expenditure from HMRC and inject that money into the industry before waiting for its turnover to exceed £ 85,000.

Besides this practical point, many businesses would prefer their customers, suppliers. If you are not VAT registered, they will know your turnover is less than £ 85,000. Among the advantages of VAT registration is the image of seriousness and professionalism develops for your company. As far as VAT is concerned, being able to say: "Am I registered for VAT?" Yes, of course" is a clear indication that you are a "good" company in the eyes of many customers and suppliers.

How to Register Online for VAT

Are you at the stage of your business where you think I need to register my business with HMRC for VAT? If so, the process for registering your business for VAT is relatively straightforward.

You can register for VAT online. However, you can also register with a paper VAT1 form if you need to. Note that processing a VAT claim can take around a month or even more.

This is straightforward, but it is done on the HMRC website (when registering online).

Here are the steps you need to take:

1. If you do not have a Government Gateway ID:
2. Go to the Register Taxes for the HMRC page, select the appropriate option, and click the Next button to step through the pages.
3. On the final page, select "Create an account for me".
4. Enter your details to create your Government Gateway ID.
5. Keep your user ID and password in a safe place as you will need to check them regularly.
6. On the login page, enter your government gateway details.
7. Once logged in, scroll to the "Obtain another tax, duty or regime" section of the page and click the button below.
8. Select VAT and follow the final steps to complete your VAT registration application.

If you have a Government Gateway ID:

1. Go to the Register for HMRC Taxes page, select the appropriate option, and click on the "Next" button to browse pages.
2. On the last page, select "I have an account - login."
3. On the login page, enter your government gateway details.
4. Once logged in, scroll to 'in the' Obtain another tax, duty or regime 'section of the page and click on the button below.
5. Select VAT and follow the final steps to complete your VAT registration application.