This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet
Tax Insider Tip: Should I Register For VAT?
21/09/2016, by Tax Insider, Tax Tips - General Tax
Rating: 0/5 from 0 people

If your taxable turnover is below the VAT threshold then you may not have considered whether registering for VAT could be advantageous for you. The VAT registration threshold is £82,000 from 1 April 2015.

If you incur VAT on supplies and the majority of your customers are registered for VAT, then it may be beneficial to register for VAT on a voluntary basis.

This will allow you to recover the input tax paid on the supplies and also allow you to charge VAT on your invoices.

It will also be beneficial if many of your supplies are zero rated, such as food, as you will be able to reclaim VAT suffered and may receive a VAT repayment each quarter, which is beneficial from a cash-flow perspective.

If you decide to register for VAT then your VAT registered customers will be able to recover the VAT charged on your invoices when they next submit their VAT return.

Mark supplies parts to various garages, all of which are registered for VAT.

He pays input tax on all his supplies, and hence would be considerably better off by voluntarily registering for VAT and recovering this input tax.

By registering for VAT, he will also need to charge output tax on his sales.


About The Author

The above article is taken from 'Tax Insider,' TaxationWeb's own publication specifically for taxpayers and their advisors. 'Tax Insider' is a monthly magazine containing numerous tax tips, articles, questions and answers from leading tax experts, aimed at helping taxpayers to save tax and reduce their liabilities.

To register and download free copies of Tax Insider, and for details of special offers and how to order, visit:

Back to Tax Tips

Please register or log in to add comments.

There are not comments added

ICPA Chairman Tony Margaritelli discusses 3 topics centred around October, including: 1. HMRC Furlough Fraud & Fighting For Your Clients, 2. Think About Yourself, 3. Are You a HMRC Customer.