VAT is a form of general tax that is placed on most goods and services in the UK. So when you opt for business registration in the UK, VAT is something that you will come across when your venture becomes considerably profitable.
There is a VAT threshold of £85,000. If your company is earning more than £85,000, then you will have to register for VAT. This tax is usually transferred to the customer. After your business reaches the tax threshold, it’s time to register for VAT.
You can get in touch with us to complete your VAT registration. We will help you with the whole process and get your company compliant with the rules of VAT filing. On that note, here are some of the benefits of being a VAT-registered business in the UK.
3 Crucial Benefits of Being VAT Registered
- Give the impression of being more established
If you are a VAT-registered business, you give the impression of earning more than you actually do. It gives the impression of being more established than you already are. Being registered for this tax lends credibility to your business and makes people look at it with fresh eyes. Also, you will receive a VAT number, which will look very professional on all company-related documents.
If you have registered for VAT, you can claim back some money on the goods and services your company purchases. If you have invested in equipment, plant, or machinery, you may be able to reclaim a lot on VAT.
Being VAT-registered means that your finances are managed properly. You can better understand your costs, payments, and receipts. This definitely helps in the proper management of the business.
Conclusion
Obviously, the biggest benefit of being VAT registered is the air of credibility that you lend to your business. When you opt for business registration in the UK make sure VAT registration is on your to-do list.
Reach out to us at Formationshunt, if you want a seamless VAT registration and filing process!
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