How to register for Value Added Tax (VAT)

/ AIMS, Quarterly Updates, SME

Author: Henry Ejdelbaum

Tags: Quarterly Update - February 2022

We have prepared a short guide to help with the process further as most businesses can register online, including Partnerships and a group of companies under one VAT number.

The registration for VAT has no cost and can be made with your accountant’s help, but it is also possible to do it yourself either online or by post, however easier and faster online.

The documents needed to register include:

  • National Insurance number (NINO)
  • Certificate of Incorporation/Incorporation details
  • Details of all associated businesses within the last two years
  • Business bank account details

To be able to access the VAT services online, you must register first for HMRC Online Services or through the Government Gateway, then visit the HMRC’s link.

It is possible to reclaim VAT paid on certain purchases before you registered, but there is a time limit backdate such as 4 years for goods you still have or goods used to make other goods that you still have, or 6 months for services. The reclaimed VAT process will ask for invoices and receipts, details of the purchase, and how it relates to your business. The reclaimed VAT should be done on the first VAT return.

You cannot charge or show VAT in your business’ invoice until you have received your VAT number, although you will still pay VAT to HMRC through this previous period. Once you have received your VAT registration number you must start charging the right amount of VAT (and tell customers why the increase), pay VAT to HMRC and submit VAT returns, and keep all VAT records plus a VAT Account.

For more detailed information, your local AIMS accountant is able to help. Make sure you read our next blog to find out the latest news in the SME world.