The UK’s VAT registration threshold is the highest in the EU at £85,000; some people argue that it holds back growth as businesses deliberately reduce sales to remain outside the VAT net. This may be true and the Treasury is going to look at how the VAT ‘cliff edge’ can be managed better.
In the meantime, the VAT registration threshold will be frozen at £85,000 until at least 2020 and the deregistration threshold will also be fixed at £83,000. This helps you predict whether you will have to be VAT registered as at 1 April 2019.
This is the start date for the Making Tax Digital (MTD) regime, when all VAT-registered businesses with turnover above £85,000 will have to keep all their accounting records digitally and report their VAT figures quarterly to HMRC using accounting software.
If you have any queries or concerns about your VAT and how MTD will affect your business, speak to a member of our helpful VAT team now. This will put your mind at rest and ensure you’re following the correct procedures for your business’ turnover. Call us on 020 8530 0720 or email firstname.lastname@example.org for advice.