VAT guidance from team of accountants and tax specialists

Posted by Vidit Agarwal on December 8th, 2020

In the UK economy, VAT (Value Added Tax) was introduced in 1973 and is unsurprisingly this is the third largest source of money to the UK government. VAT registration is the process of listing your business with the government as active in production and sales.

VAT is charged on:

• items sold to staff (i.e. staff canteen meals)
• business sales (i.e. goods or services you offer as a business)
• commissions
• sale of business assets

In the present time, VAT return and Registration is the hot topic of discussion in the business world. Business persons are confounded whether they should register for VAT or not? VAT (Value Added Tax) is charged for practically all that we buy or offer.  For 2020/21 the edge of VAT registration is £85,000. On the off chance that the turnover (taxable turnovers, implies add up to wage made by all deals, not only the benefit created by the deals) of your business is above edge amount then you have no choice than to run with VAT registration.

As with all tax and accounting decisions, it can be complicated and all comes down to your individual circumstances and plans for the future. DNS Accountants is an award winning UK based accountancy firm that provides full range of accountancy services, payroll accounting, bookkeeping, self-assessment tax return, year-end accounting service to contractors/freelancer/sole trader and private limited companies across the UK.