Does a small business need to be VAT registered to charge VAT on invoices?
Answer:
Yes, you need to be registered to charge VAT. Otherwise how would you pass on that tax?
There are some benefits to being VAT registered, as you can claim back the VAT on your own purchases as well as paying on the VAT you charge your customers which can work to your benefit, but until you are tuirning over about £15k a year its usually not worth considering it.
Ask the tax office if your own business seems to look as if it would benefit from being VAT registered
Yes
No. Not if your turnover is less than £60,000 (although that may have changed slightly now)
You don't need to be registered as a company, but check with HMCE (formerlley Inland Revenue) for turnover limits (it was 55K at one point).
You cannot charge VAT if you do not have a VAT registration number. And even if you did, VAT MUST go into a seperate VAT account, not the main account.
See a accountant please!!
To charge VAT you must be VAT registered. If your turnover is £60k plus then you have to registered by law. By being VAT registered and charging VAT you are automatically more expensive than your non-registered competition to the tune of 17½%. There is also a lot more paperwork involved when completing tax returns - do you eally want all this extra hassle.
You must be VAT registered to charge VAT.
Charging extra and claiming it as VAT when you are not VAT registered is illegal and dangerous. It cost nothing to check with HMRC if a business or company is VAT registered.
Yes. You need to be VAT registered to charge VAT.
You can be a sole trader charging VAT.
You can not charge VAT until you are registered for VAT. Phone your local office of the HMRC and they will tell you and help you fill in everything you need to. Or you could go to a good book keeper like me for help.
PLEASE DO NOT LISTEN TO MOST OF THE ADVICE HERE!
Unless you have an annual sale/turnover of £60,000 then you should not be VAT registered, and you should not charge VAT, you can volunatarily register for VAT, but I would not recommend doing so as the extra paperwork, is a pain in the backside!!
Furthermore, if in a trading year you find that you have passed the VAT threshold of £60,000 you then need to register, at which point you do not need to record VAT until the start of the second month after breaching the threshold.
Any problems give me a ring 07984-235701
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