If you expect to earn an income of £85,000 or more as a sole trader over a period of one year, you are required to register for VAT with HMRC. As a VAT-registered sole trader, you need to charge your customers VAT on all eligible sales and pay it directly to HMRC when reporting your VAT returns.
At PBAS, we provide a range of services to help you manage your Value Added Tax (VAT) affairs. Whether you’re just starting out or an existing business, we can help you decide whether you need to be VAT registered and monitor your situation to ensure compliance with regulations.
Our team can prepare your VAT return, either from your own bookkeeping records or we can take care of your record keeping and the VAT return. We will ensure that you claim as much VAT as possible, particularly on contentious items such as mixed-use expenditure and motor running costs. Our software allows us to file your VAT returns online with HMRC, which is now the preferred method.
It’s important to avoid penalties and interest that can arise from late VAT registration, errors, late VAT returns, and late VAT payments. By allowing us to take care of your VAT affairs, you can have peace of mind and avoid wasting your hard-earned cash.
Making Tax Digital for VAT
If your business is VAT registered business, you are now required to keep digital records and file your tax returns using compatible software.
Being VAT-registered has its advantages, as you can claim back the VAT on eligible goods or services that you purchase for your business.