For 2017 to 2018, the threshold for the UK VAT Registration has been set at £85,000. You might consider it a major income but keep in mind that it is regarded as the amount of the tax turnover. So it is the complete income that is generated by all the sales, the profit and loss everything is considered in VAT registration.
This is the reason that small business and organizations have to legally apply for the UK Vat registration. For some organizations, it is voluntary and for others it is necessary.
Some of the amazing benefits that an organization will get from UK Vat registration are:
• You are allowed to apply the VAT to all the services and the products that you are selling
• When you purchase the services and good from the other business you will get the opportunity to reclaim the VAT
• When you get the UK Vat registration it will give the impact that your business is properly established and well-organized. So it will be easier for you to attract potential customers, lenders, and investors
• Most of the companies prefer to work with the organizations that have been registered by VAT. So when you receive your UK Vat registration number make sure to display it on the websites, invoices, and letterheads to let others know that you have been legally registered
• All you have to do is supply sufficient evidence to HMRC and get your voluntary registration backdated to four years
So make sure that you do not ignore this opportunity. Make your small business have the same value as the larger enterprises with the UK Vat registration number. In order to stay in the competition, it is important that you utilize all the methods that will help you stand out.