HMRC have launched a handy new digital VAT Registration Estimator tool, with the aim of helping small business to determine if and when to register for VAT, including voluntary registration.
By Chris Davies
How to use the VAT Registration Estimator:
Before starting you will need information to hand about your business income and costs, and the VAT rates that apply to them. Then:
- read the information online about what the VAT Registration Estimator tool does and use the links to the guidance for more information
- input whether the business is, or will be, based in the UK
- input the approximate business income and business costs for the time period you wish to estimate, up to 12 months. This can also be used if setting up a new business
- use the guidance links provided to choose the VAT rate(s) for the business income and costs – as an estimated percentage of zero, reduced or standard rated, or VAT exempt, goods and services
- then input if the business would prefer to add VAT to, or absorb VAT into, the current or estimated selling price
- check the answers and complete the form to review the results, which can be saved and printed.
The estimator is free to use, and HMRC say it should take around 20 minutes to complete on first use. The estimator is accessed through GOV.UK guidance pages, rather than the Government Gateway. HMRC will not record the details that you input.
I am hopeful that this could prove very useful for new and existing businesses.
You can follow this link to access the tool
If you would like more advice about whether VAT registration is right for your business or are ready to take this step, please get in touch. We can help you through the VAT registration process, and then with preparation and submission of your VAT returns.
