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Basics of VAT

22 February 2022 / Sophie Hill
Issue: 4829 / Categories: Comment & Analysis
72779
Simple as VAT

Key points

  • To register or not to register that is the question.
  • Liability versus entitlement to be VAT registered.
  • The cash accounting scheme and annual accounting scheme.
  • A person ceasing to do business must de-register and charge themself VAT.

What VAT issues should be borne in mind on commencing a UK business? What circumstances make action necessary where a registered person ceases to trade? While I cannot hope to cover every detail or eventuality in the course of this article I will stick to the points that regularly form part of the examiners’ suggested solutions for ATT and CTA.

VAT is an ongoing issue for sole traders partnerships and companies making significant levels of taxable supplies in the course of their business. Most businesses at some point during their existence will be exposed to the vast array of rules and requirements that HMRC has created...

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