Do I need to register for VAT (UK)?

If starting up as a limited company or sole trader, if, at the end of any month, your annual turnover is under £83,000 (2016) in the previous 12 months or less you are NOT required to register for VAT. Although, if you want to you can voluntarily register for VAT no matter what your turnover.

If you trade as a sole trader (for example Bookanory Publishing House or T. J. P. Campbell) then the VAT registration must be registered in that name. If you have formed a limited company Bookanory Publishing House Limited) then the VAT registration will be in that name.

However, when it comes to digital services (such as if you are selling ebooks or software) the VAT regulations are immensely complicated and have caused many small businesses to give up selling from their own websites–including Bookanory. This will be commented on in another Business article on this site.

Disclaimer: This information is based on an interpretation from UK online information. Please check all business matters relating to TAX with your accountants and your country’s tax authorities (see HMRC if you are from the UK).