Many business owners choose to use an agent, to avoid mistakes
If you are going to register yourself, pay attention to these tips
Register the correct address
You’ll register the address where you carry out your work activities. Your work address, or your home address if you work from home. This can also be the address of your accountant, as HMRC would be able to access your VAT records via your accountant should they ever inspect.
Make sure you’re on the correct VAT scheme
The cash accounting scheme
The cash accounting scheme is similar to the standard VAT scheme, except it enables you to account for VAT according to payments received and made instead of invoices issued and received.
The annual accounting VAT scheme
Similarly to the standard VAT scheme, you’ll make advance VAT payments towards your VAT bill throughout the year, but instead of submitting quarterly returns, you’ll submit one VAT return annually. As you still have to calculate your VAT each quarter, we do not recommend this option.
The flat rate scheme
This scheme is designed to relieve some of the burden of the admin of VAT returns. Your business pays a fixed rate of VAT to HMRC and keeps the difference between what you charge customers and what you pay to HMRC. This can be of benefit, but there are times when the above standard scheme is more beneficial.
Make sure you get the accounting period right
To register online to submit and view your VAT account, make sure you have these 5 key pieces of info:
- VAT Number
- Data Registration
- Post code of your principal place of business
- Quarter end
- Box 5 figure (ie your VAT liability – how much are you going to pay the VAT man)