If you’re running a small business, the prospect of VAT can be terrifying. In reality, it may never apply, it could actually be beneficial if you’re purchasing lots of goods and some contracts maybe VAT-exempt. It can be easier than you think. HMRC says:
Supporting small businesses and sole traders – new VAT Registration Estimator launched
To support established and prospective small businesses, we have launched a VAT Registration Estimator tool to help businesses determine what VAT registration could mean for them.
VAT-registered businesses must charge VAT on eligible sales and can usually reclaim it on eligible purchases. There are around 300,000 new VAT registrations each year.
Businesses can access the new estimator tool and check what registering for VAT may mean for their business on GOV.UK.
We have recorded webinars to help businesses understand what the estimator tool does and how it can be used.
The webinars also provide details about what information is needed when using the estimator and signpost attendees to a step-by-step user guide on GOV.UK.
Benefits of using the VAT Registration Estimator
- The tool will generate an estimate of their business’s profits based on the range of estimated costs and the associated VAT rates.
- It’s also useful for businesses operating below the £90k threshold who may want to register voluntarily to claim VAT back on their business purchases.
Users do not need to log on to GOV.UK or disclose their identity to use the tool.
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