Your company must register for VAT if its sales are more than £82,000 in a 12 month period. However you can also voluntarily register for VAT if your sales are below this level.
If you reach the turnover threshold and you fail to register your company, HMRC can levy penalties against the business. Once you are VAT Registered you must add an additional 20% onto your sales invoices – this isn’t additional sales but tax you will collect on behalf of HMRC (Output VAT). When your company pays for something, it may be charged VAT on these purchases (Input VAT).
Once a quarter Gorilla Accounting will calculate Output VAT - Input VAT to determine a VAT liability. This is reported to HMRC on a VAT Return and any amount due is paid to HMRC. At Gorilla Accounting, we often recommend our clients voluntarily register for VAT, even when turnover is below the threshold. By registering immediately, you will have access to the advantages of the Flat Rate Scheme for VAT.
The Gorilla Accounting team prepare VAT Returns on behalf of clients. All you are required to do is to submit through FreeAgent and pay any amount due to HMRC each quarter. This can even be arranged to be paid via direct debit.
If you’re ready to take the next step and form your limited company, get in touch with a member of our New Business Team by calling
“This is the 3rd accounting firm I am using and I am finally happy as things are done properly, on time and without mistakes or lapses. I am also quite happy that it is the same accountant that answers all my queries.”Michelle
"I am so pleased I switched. The service from Gorilla is exceptional, they all work to a very high standard. Gorilla is a really great accountancy service and I would give 11 out of 10 if I could!"Jaspal
“The accountant I've been working with has been absolutely fantastic, particularly with providing fast and thorough responses to all of my questions (and there have been a lot!). I am continually impressed and couldn't be happier with the quality of service.”Eugene
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Unit B Lostock Office Park
Bolton BL6 4SG
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