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New VAT thresholds – When must you register and when can you deregister?

VAT thresholds

The VAT registration threshold rose from £85,000 to £90,000 from 1 April 2024. The deregistration threshold increased from £83,000 to £88,000 from the same date. The changes in the thresholds change the trigger points for compulsory registration and optional deregistration. When must you register? You must register if your taxable turnover in the last 12 … Read more

VAT penalties – New rules for 2023

VAT penalties

The VAT default surcharge is being replaced with a new VAT penalty and interest regime. The new rules apply to VAT accounting periods beginning on or after 1 January 2023. Late filing penalties The new penalty regime operates on a points-based system. Each VAT return received late, including nil and repayment returns, will receive one … Read more

VAT bad debt relief

VAT bad debt relief

If customers do not pay a bill on which you have charged VAT, you may be able to claim bad debt relief & recover the VAT paid over to HMRC

MTD for VAT for all

MTD for VAT for all

Under Making Tax Digital (MTD) for VAT, VAT-registered traders must keep electronic records and file their VAT returns electronically using software that is compatible with MTD for VAT. Prior to 1 April 2022, MTD for VAT was only mandatory for VAT-registered traders whose turnover for VAT purposes was above the VAT registration threshold of £85,000. … Read more

Do I need to register for VAT?

Do I need to register for VAT?

You must register your business for VAT if your VAT taxable turnover exceeds the registration threshold. This is currently £85,000. You must register if: at the end of any month, the value of your VAT taxable supplies in the previous 12 months or less is more than £85,000; or at any time if you expect … Read more