When should you get your company Vat registered?

Value added tax (VAT) is a tax which is applied to most of the products and services in the UK. It is normally charged on those goods and services which are imported from countries outside European Union (EU). If you have a VAT registered company, you can reclaim for VAT in certain situations. If your business is not VAT registered, you will not get any VAT refund on your products and services. Reclaiming is the main reason due to which most of the companies prefer to register for VAT. This registration is whether done on compulsory grounds or voluntarily.
Voluntary VAT registration:
The specific turnover of your company will decide whether you should get your VAT registration or not? If your business has a turnover less than the amount specified by the government, you still have the opportunity to get it registered on a voluntary basis. Several advantages of getting a VAT registration on a voluntary basis includes the following:
• VAT registered businesses are able to reclaim for VAT on several goods and services purchased from different businesses.
• By registering for VAT, small companies may represent themselves as a big ones in market. An established state of a company attracts more customers, clients and lenders.
• Every VAT registered company has a specific number provided by the government. This number is then displayed on invoices, pay slips and other items. Again, this will be appealing to most of the customers and lenders.
• The amount of VAT can be applied on almost all of the products or services offered by a company.
Compulsory VAT registration:
According to the law, if a company’s total turnover for the last 12-months exceeds VAT registration threshold, it should get registered. Currently, the threshold amount in the UK is £81,000. Variations in this amount is seen every year. So, before you start the process of registering your business for VAT, check for the latest VAT registration amount.
Apart from this reason, a company should also get VAT registered if it takes over another company which is already registered for VAT. There is another obligation, if you think that your business will exceed VAT registration threshold in the next 30 days, you should register for VAT.
Delay in the registration process will lead a company towards late registration penalties. A temporary increase in the VAT threshold does not make registration compulsory, you can ask for an exception from HMRC.
Final verdict:
You can get your company VAT registered in two ways. The first one is online registration i.e. you have to apply online for registration. The second way is applying by post. Send an application with required documents to apply for VAT.

There are certain situations in which companies are not eligible for getting registration for VAT. For example, if a business is not fulfilling the standard as stated by HMRC, it cannot get VAT registered. Business is also not eligible to apply for registration if it sells only those products and services on which VAT is not applied.

A guide to company registration UK

Thanks to modern developments, company registration UK company registration UK has now become exceptionally easy and quick. There is no necessity to fill out paper forms and wait in the queue for weeks until you get the confirmation. Although it is a wise decision to hire a professional company formation agent to handle your company registration work, it is always good for a business owner to know the important aspects of company registration UK. Here are some of the crucial steps of the registration process.

Be sure about the type of the company you need to register

It is always important to be sure about the type of the company you intend to register. You should have a serious look about your business plan and decide if you are going to form a limited company or another option. In general, most of the entrepreneurs prefer to go for Private Limited Company considering the number of advantages it would deliver for the company. A limited company is the best form of business structures to assure the protection of the shareholders from the potential liabilities of the business. However, company registration UK is associated with a considerable amount of documentation and correspondence with HMRC and Companies House accordingly.

Decide a captivating name for the company

Selecting the right kind of name to the company is a very important step; the name of your company will be the brand name for the rest of the years. You have to decide a name carefully; it should match the type of the business, relate to the industry, unique, easy to remember and create a strong impression about the business. After deciding the name, you must send it to the Companies House and check if the name you selected is already been taken by another vendor. If yes, you might have to go for another option (name).

Gather all required information

Upon company registration UK, you will need to have some specific information ready.

The name of the company that you have decided and checked with the companies house
Official address for the company (this will be used for correspondence purposes)
A brief outline of the plans of the business
Details related to shares
Information about the directors, company secretary (if applicable) etc.
Information about the shareholders

Have MoA and AoA ready

Both MoA (Memorandum of Association) and (AoA) Article of Association portrays the constitution of the company. Such documentation provides a general idea about the formation and the operation of the company. These documents should be duly ready in order to achieve a successful registration process. Most of the companies find it difficult to create these documents in a professional manner and that is when they should look for third party professionals.

Once this information is gathered, you can submit the same to the Companies House to initiate the registration process. If you plan to do it yourself, you can select Online method or paper filing method depending on your convenience.