VAT

If you wish, we will register your company for VAT with HM Customs and Excise, for no extra charge. Just tick the box when you order, and we will send you a letter of authorisation to complete and return it to us.

Not every business has to register for VAT. If your annual sales are below £56,000, you may not have to.

However, for most businesses, it will make sense to register for VAT straight away, because:

• if you are selling to VAT-registered businesses, it's no cheaper for them if you don't charge VAT
• if you are VAT-registered, you can reclaim the VAT you pay on products and services you buy for your business
• if you are not VAT-registered, the message you send to your customers is "I am a very small business."
• if you become successful and your turnover goes over the threshold, you will have to register anyway - and then your have to put your prices up.

VAT sounds intimidating, but it's really no problem if you follow some simple rules. Keep proper records, and most accounting packages will generate your quarterly return for you. (We know how most business people hate keeping accounting records, so we have made it easy for you with our specially designed accounting package. Click here for details.)

And if in the early days you have more money flowing out than in, remember to ask your accountant about monthly returns - they could be a big help to your cashflow.

Remember to reclaim the VAT you pay on the cost of the StartNewBusiness package, and any other VAT you pay on goods or services you have bought for your business.

 
Tax

All new businesses have to be registered with the Inland Revenue. We make sure this is done properly for your business.