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Where Taxpayers and Advisers Meet

Do I need to vat register

Nicsy peach
Posts:1
Joined:Sun Sep 10, 2017 3:45 pm
Do I need to vat register

Postby Nicsy peach » Sun Sep 10, 2017 3:54 pm

Company A owns a property. It rents the property out for residential use to a private individual. Rental income earned is £100,000 per annum. Does the company A need to register for Vat. If so does it need to charge Vat.

Now Company A additionally provides some project management services. Income from fees invoice is £50,000 per annum.
Does company A need to reigister for VAT?
If so does it now need to charge Vat on rental

Company A additionally purchases items for clients. Disbursements are repaid to company A. If the sum of disbursements and project management income is more than &85000 does company a need to register for vat?

Financial Bookkeepers
Posts:5
Joined:Sun Sep 10, 2017 7:54 pm

Re: Do I need to vat register

Postby Financial Bookkeepers » Sun Sep 10, 2017 8:03 pm

You must register for VAT with HM Revenue and Customs (HMRC) if your business’ VAT taxable turnover is more than £85,000.

When you register, you’ll be sent a VAT registration certificate. This confirms:

your VAT number
when to submit your first VAT Return and payment
your ‘effective date of registration’ - this is the date you went over the threshold, or the date you asked to register if it was voluntary
You can register voluntarily if your turnover is less than £85,000, unless everything you sell is exempt. You’ll have certain responsibilities if you register for VAT.

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: Do I need to vat register

Postby les35 » Mon Sep 11, 2017 9:10 am

Residential lettings are exempt from VAT, so no obligation to register.
Project management is taxable. If the customers are in business, I would register, to recover input tax. Although you will need to check the Partial Exemption rules.
Genuine disbursements are outside the scope of VAT; HMRC Notice 700, Chapter 25 explains this. But expenses recharged to customers are not overheads, and so count towards taxable turnover.


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