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Director VAT UK, Value Added Tax in UK

Tony Dhanjal


This Article Contains

VAT UK Overview


If you’re a small business owner, limited company director or freelancer, UK VAT is likely to play a significant part in your business. Some directors or business owners don’t give enough thought to VAT and often follow a ‘binary’ decision making path of not registering their business if the VATable turnover is below the current VAT threshold, and registering for VAT as soon as they realise it has exceeded the threshold. A singular mindset of VAT is BAD for business could be costly. A business owner should obtain some basic knowledge and carry out or get a VAT evaluation, in order to make an informed decision. Now it may transpire that not registering for VAT UK (unless of course you are obliged to) is the right decision, the right informed decision.

In our latest VAT video  for the Accounting & Tax Academy on YouTube we’ve broken down the ins & outs of VAT UK as well as going into salient points you need to consider when making the decision to register for VAT in UK if you are doing so before legally required. 

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In addition to our video resources explaining the basics of VAT we’ve prepared 2 downloadable resources you can access by completing the form to your right. 

•A full table illustrating the various VAT exempt, reduced rate and zero rated supplies.

•  An in-depth look at the VAT Flat Rate Scheme including the varying rates for different types of businesses.

Should I register for VAT?


Often, there can be many benefits to registering for VAT UK before you reach the current threshold. Once you have registered for VAT you will be able to claim what is known as input VAT on products and services you have incurred wholly & exclusively for your business activities. However, this does mean your business (whether a sole trader or company) will have to start charging your customers VAT, known as output VAT. However, not all products and services are chargeable at the current standard rate of 20%. 

A VAT evaluation, is a service we offer that will enable you to make a more informed decision about whether or not your company could benefit from registering for VAT before hitting the VAT UK threshold. You can learn more about this service from the video below.

What is a VAT Evaluation?


VAT Evaluation Service

from £ 99
  • In depth evaluation from a VAT expert.
  • A full analysis based on your specific circumstances.
  • Detailed information so you can make an informed decision about VAT registration.

As a Qualified Accountant, I have been supporting and serving SME's, freelancer and entrepreneurs over 25 years. I am passionate about helping and empowering you to KNOW YOUR NUMBERS so you can manage and grow your business or personal finances to success.

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Disclaimer – all our content is for general guidance only and does not constitute formal advice. We always recommend you take professional advice.