With a reduced rate of VAT of 5% then 12.5% from 1st October 2021, the hospitality, tourism and food industries were given a bit of a lifeline to help them recover from the closure of many businesses through the pandemic.
As a business owner you are responsible for keeping track of your turnover every month if you are getting close to the VAT registration threshold as you must register within 30 days of reaching the current threshold ....
With MTD for VAT becoming mandatory for all VAT registered businesses from April 2022 are you set up with the means to file your VAT returns directly from the software you use to record your accounts?
Businesses need to register for VAT when they reach the VAT threshold but understanding when that is and what to take into account when calculating your trading income is a little more complex.
Several years ago a business was put in touch with me about their VAT situation because they had been told by their accountant that they did not need to be VAT registered.
