Basics of 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 to manage the tax. Having said that HMRC is not usually waiting around the corner demanding a VAT return and payments from the moment a business commences and has put in place a couple of useful schemes which should not...