VAT

Question 1

Explain the process to register for VAT

Answer 1

• Where taxable supplies on a rolling 12-month basis are more than the VAT threshold (£85k)
• Must notify HMRC
• within 30 days of the end of the month in which the limit was exceeded
• If the value of taxable supplies to be made within the next 30 days is expected to be in excess of the threshold
• they must notify before the end of the 30 day period
• Or he could voluntarily choose to register even when he is not at the threshold
• Failure to notify HMRC in time may result in penalties