VAT registration

In this lesson

1. 0:00 VAT registration tests explained
2. 0:26 Historic test and notification deadline
3. 1:17 Future test for upcoming supplies
4. 2:12 Voluntary registration benefits and considerations
5. 4:04 Worked example Sally's registration date
6. 5:02 Pre-registration expenses recovery rules
7. 7:25 Compulsory and voluntary deregistration
8. 8:22 Deemed supply on deregistration

About this lesson

You'll also explore voluntary registration benefits like input VAT recovery, pre-registration expense rules, and deregistration requirements including deemed supply calculations. The historic test requires you to look back 12 months and register if taxable supplies exceed £90,000 by the end of any month. You must notify HMRC within 30 days, with registration effective from the first day of the following month. The future test applies when supplies in the next 30 days alone are expected to exceed £90,000—you register immediately from day one of that period. Voluntary registration lets you recover input VAT on purchases and can enhance your business credibility, but it means charging VAT to non-registered customers. Input VAT on pre-registration services can be recovered if supplied within six months before registration, and on goods purchased within four years if still owned at registration date. When you deregister, you must account for output VAT on any remaining assets and inventory through a deemed supply calculation, unless the VAT owed is less than £1,000.

Duration: 9m