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TaxRobin
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when starting a new business is it 87 thousand you have to

Resolved Question:

when starting a new business is it 87 thousand you have to reach in the first 12 months of trading before you have to pay vat if this is the amount does vat start from that amount or from day one of trading even if you have no idea at that stage what you would be earning
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
You must register for VAT with HM Revenue and Customs (HMRC) if your business’ VAT taxable turnover is more than £81,000.
You must register for VAT with HM Revenue and Customs (HMRC) if it goes over the current registration threshold in a rolling 12-month period. This isn’t a fixed period like the tax year or the calendar year. Yes VAT counting would begin on the first day of trading.
To check if you’ve gone over the threshold in any 12-month period, add together the total value of your UK sales that aren’t VAT exempt.
Then if you have , in that 12 month period, reached the £81,000, you register.
You should check your rolling turnover regularly if you’re close to going over the threshold.
When you register, then you collect. You can go back and reclaim VAT for purchases before you registered. You have 4 years to backdate and reclaim.
Once you know you are at the threshold you register.
From the effective date of registration you must:
charge the right amount of VAT
pay any VAT due to HMRC
submit VAT Returns
keep VAT records and a VAT account
You can’t charge or show VAT on your invoices until you get your VAT number. However, you’ll still have to pay the VAT to HMRC for this period, after you hit the threshold.
You should increase your prices to allow for this and tell your customers why. Once you’ve got your VAT number you can then reissue the invoices showing the VAT.
Customer: replied 2 years ago.

been in business two years this march accountant said he applied for vat when I started as blaming them as only got my no 6 weeks ago now been estimated a lrg sum to pay so you are saying I only pay vat afer I hit the threshold of 81 thousand is that right

Expert:  TaxRobin replied 2 years ago.
You are only required to register once you hit that mark and then issue the VAT invoices and can reclaim your own but VAT was applied on any VAT sale that was not exempt.
The threshold is on registering.
If your accountant registered when you started then you were under all the rules for the invoicing and charging VAT from start.
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Category: Tax
Satisfied Customers: 15045
Experience: International tax
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