How To Join The UK VAT Register

The UK VAT registration process isn’t easy, but knowing how the UK VAT register works is vital to the success and legal compliance of your business. Not only does registering avoid any organisational complications, but it also means you’ll win the trust of your UK customers.

In this guide, we’ll be taking you through the steps needed to register for a VAT number UK, including how to determine whether you need to pay VAT, as well as how to find support from a qualified VAT agent.

1)     Understand VAT In The UK

First things first, it’s important to understand what UK VAT registration is, and how to register for a VAT number UK. Value Added Tax is the tax paid by consumers in the UK, and it is applied to the sale of both goods and services. While businesses don’t pay VAT directly, they are the party responsible for reporting it to HMRC, as VAT payments are made by customers when they make a purchase.

The rate of VAT that your customers will pay depends on the types of goods and services that you offer:

• Standard Rate – 20%

Most goods and services in the UK are charged at the standard rate of tax, 20%.

• Reduced Rate – 5%

For certain goods and services, like fuel and health products, the UK government imposes a reduced rate of tax, which sits at 5%.

• Zero Rate – 0%

Some items have a 0% tax rate, particularly if they relate to food or children’s items like clothes and books.

2)     Determine Whether You Need To Pay VAT

If you’re a business looking to import your products or services to the UK, then it’s likely you’ll need to pay some form of VAT. If your annual turnover exceeds £85,000, or you meet certain criteria when based overseas, then this is a requirement; even if your turnover falls below this, you can still choose to register as a UK taxpayer if you wish, which is known as joining the ‘voluntary register’.

3)     Understand The VAT process

If you think your business might need to pay VAT in the UK, then it’s important that you understand how the process works. Joining the UK VAT register can be complicated, especially for overseas organisations, and before you find an agent you should have a general idea of what to expect.

• Firstly, you’ll need a VAT number, which is provided by HMRC early in the registration process.
• Next, you’ll need to complete a VAT registration form, either online or by post. Your agent will be able to advise you on which form you need to complete.
• As part of the process, you’ll need to provide some detailed information about your company, including your overseas location, name, and the nature of your products and services.
• Your agent will then help you to establish whether you’d pay under one of the standard, reduced or zero rate schemes, or if your business would be suitable for a flat rate scheme.
• Once you’ve registered, you’ll be expected to keep a record of your VAT transactions, and submit regular VAT returns to HMRC.

4)     Find An Agent

Although it can be tempting to try and navigate the UK VAT register alone, cutting corners is a bad move if you’re trying to register your overseas-based business. That’s why finding a qualified agent to support your registration is vital. Expert VAT agents come with a host of benefits:

• The registration process will be carried out professionally from start to finish.
• All correspondence with HMRC – such as change of address documents – will be completed on your behalf.
• Need help with VAT returns? A VAT agent has you covered! They’ll be able to calculate and confirm exactly how much you need to pay and why.
• Any disputes can be resolved easily with a VAT agent, as they are experienced in dealing with tax matters and HMRC.
• If you don’t want to get involved with HMRC or the VAT process at all, then you can sit back and let your agent do it for you!

Need to find a reliable agent for the UK VAT registration process?

Then you’re in luck! It’s easy to find a professional agent who can support you every step of the way, and will take some away the stress of trying to find forms and information yourself, especially if you live abroad. A qualified company like VAT Number UK will even be able to provide a local address for registration.

To register for a VAT number UK, it might seem like a simple process, but having an agent on your side will make life a lot easier! From establishing your tax rate to managing HMRC correspondence, using a VAT agent is the best route to take if you want to register for UK VAT from overseas.