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Tips for Quick VAT Registration
Newsletter issue - July 09.
There are a number of reasons why you would want to, or need to, register for VAT quite quickly. Once your turnover for the last 12 months exceeds £68,000 you must register for VAT within 30 days. If you start a new business, incorporate your current business (see above) or buy an existing business you may also need to register for VAT immediately.
The VAT office aims to issue a VAT number to 70% of businesses within 13 working days of receiving the application for VAT registration. However, the remaining 30% of businesses may suffer delays, which can damage the viability of the business. If you need to register for VAT follow these tips to speed up the process:
- Use the correct form: VAT 1 – this form was revised about a year ago so make sure you use a new version.
- Include the bank account number for the business that is registering for VAT. Do not include a bank account number for a different business. No bank account will delay the registration.
- Show a contact telephone number for the business. Although it is not a legal requirement to have a telephone number, the VAT registration will be delayed if you don't include one.
- If the business is a company you must include the date of incorporation and the company number.
- The business address must be a UK address where the business will be carried on. A 'care of' or PO box address is not acceptable.
- The business activity description must be clear and not generalised. Consultancy businesses need to state their area of expertise, such as 'business management' or 'information systems'.
- You must include an estimate of the annual turnover. This gives the VAT office an idea of the risk profile of the business.
- If any of the business owners have been involved in any other businesses in the last two years the full names of those businesses, including VAT numbers, must be given.
- If you are registering for VAT on a voluntary basis complete box 13 and specify the date you require to be VAT registered from.
- The VAT 1 form must be signed by an appropriate person, such as partner or director. Remember to state in what capacity that person is signing.
Chartered Accountants in Richmond, Surrey, The Hughes Consultancy provides a wide range of business, tax, financial planning and business growth services. All of our clients benefit from competitive pricing, our expertise, and unlimited support. Contact us today to learn how we can support you.