Top 10 Tips for VAT Registrations (January 2008)
Registering for VAT is an important step for any company. Here are our Top 10 Tips for a smooth VAT registration.
- 1. Future perfect: it is important to plan ahead and know if and when to register for VAT. You need to monitor your turnover, so that you know when you are approaching the £64,000 threshold, or when it makes sense to register voluntarily for your own business reasons.
- 2. On time on-line: submitting a VAT registration form on-line may well get you registered quicker. Experience has shown that there are more likely to be delays with paper-based registrations.
- 3. No blank looks: it is important to answer all of the questions on the form, leaving no blanks. If you do leave spaces, you will be asked to fill these in and this iteration of the form will delay your registration.
- 4. No secret agents: if you are authorising an agent, you must enclose the correct documentation, i.e. a completed 64-8 form.
- 5. Evidence to bank on: if you have applied for a bank account, it is important to enclose evidence of this fact, which, in the first instance, would be any correspondence you have with the bank.
- 6. Group scoop: if you are applying to join or form a VAT group, do ensure that all of the appropriate forms are completed – a VAT 1, a VAT 50, as well as a VAT 51 for every ‘person’ joining the group.
- 7. Intent to supply: if you are registering for VAT voluntarily, you will speed matters up by enclosing evidence of your intention to make taxable supplies. This evidence might be purchase orders, letters of intent, or other evidence that you intend to make taxable supplies.
- 8. Get it covered: your registration will be easier if you compose a covering letter laying out the facts behind the application i.e. the basis on which you are registering, relevant dates, special requests for VAT return periods etc.
- 9. Be correctly addressed: ensure that you send the form to the correct address – VAT registration processing is now centralised in Wolverhampton, with group registrations being processed in Grimsby, and applications from overseas businesses in Aberdeen.
- 10. Fraud focus: if you are dealing in goods commonly associated with MTIC fraud – for example, mobile phones or computer chips – be prepared to provide evidence that your suppliers and customers are legitimate, and that you have carried out the necessary checks.
© Baker Tilly UK Group LLP, all rights reserved, 01.08
This technical briefing is designed for the information of readers. Whilst every effort has been made to ensure accuracy, information contained in this briefing may not be comprehensive and recipients should not act upon it without seeking professional advice from their usual professional adviser.
Baker Tilly & Co Limited is authorised and regulated by the Financial Services Authority to conduct a range of investment business activities.
Baker Tilly UK Audit LLP, Baker Tilly Tax and Advisory Services LLP, Baker Tilly Corporate Finance LLP and Baker Tilly Restructuring and Recovery LLP are not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide.