VAT registration April 2007 to March 2008

A business making taxable supplies in the UK must register for VAT if

• its revenue in the previous 12 months exceeds the VAT Registration Limit, or
• it is expected that the turnover in the next thirty days will be more than the VAT Registration Lmit

A company may cancel its registration if

• revenue falls below the VAT Deregistration Limit, or
• the company can show turnover will fall below the limit in the next 12 months.

The limits from 1 April 2007 are:

VAT Registration: £64,000
VAT Deregistration: £62,000

VAT

VAT
Value added tax (VAT) is a tax on sales that currently stands at 17.5% in the United Kingdom. Whenever a company makes a sale to another company or to an individual consumer they must pay VAT at 17.5% to HM Revenue & Customs.