When to register for VAT

integro Contractor Tax

VAT registration can be applied for either voluntarily or because it is compulsory to do so.

Compulsory registration: if your company turnover without VAT exceeds £82,000 within a 12 month, period or is expected to exceed £82,000 in the next 30 days, the company must register for VAT.

Voluntary registration: there are also reasons why a business may choose to register for VAT voluntarily and this is something that should be discussed further with an accountant.
One reason to register voluntarily is to make use of the flat rate VAT scheme whereby a small additional profit can be made from being VAT registered. Further details can be found at Flat rate scheme.

Another reason that freelancers often opt to register for VAT voluntarily is to raise the credibility of their company within their market space; showing that the company is based in the UK and operating a ‘real’ business.

If you are likely to be incurring quite a high level of VAT on the purchases that you make then that is also a good reason to register for VAT voluntarily; as the business can then reclaim the VAT paid on those purchases.

If your clients are likely to be members of the public or companies that are not themselves VAT registered then voluntary VAT registration may not be appropriate. Those clients will not be able to reclaim VAT on their purchases and will therefore compare your business’ price including VAT, with that of businesses that have not had to apply VAT.

Why Integro Accounting?

Integro Accounting is the UK’s only specialist provider of fixed fee, limited company accountancy services for contractors, consultants and freelancers that was established to an award winning standard – our Practice Manager, Maria Hickmott FCCA, won The British Accountancy Awards’ ‘Accountant of the Year’ in 2011.

We were set up with the vision of providing a service that is the ultimate for the dynamic, busy professional of today in a language you understand.

Integro Accounting have designed a bespoke service for the contractor who is always on the go; never forgetting that one size will never fit all.

The relationship you have with your accountant is the most important factor in our service which is why we will always offer unlimited contact with your own personal accountant; whether that contact is via the phone, email or face to face.

We have our 3 offices located in London, the South-West and on the Bedfordshire and Buckinghamshire border. There are also meeting locations in many of the major cities and towns across the Home counties, South-West and South Wales, all conveniently placed so that you never have to travel far to meet your accountant.

If you have any questions about contracting or would like to find out more about how Integro Accounting can help you and business please call Christian on 01525 303984, email christian@integroaccounting.com or request a callback.