What is required to be VAT registered?

What is required to be VAT registered? The requirements are simple and would be typical in the sector that you operate if such a registration is challenged by HMRC. For example, if your company operates in the Financial Services sector, then HMRC may request sight of evidence with customers, whose suppliers are, copies of lease agreements.

The compulsory registration threshold, that is the turnover that a company must register for VAT is £85,000 GBP. A company may register prior to this if it expects turnover will exceed this amount shortly.

Note: it is possible to have an overseas entity registered for VAT. If you intend to sell through Amazon’s marketplace, part of their requirements is that the entity trading through this platform is VAT Registered. 

Information required for VAT application for registration

The following information must be provided as part of the application process:

Company details

  • Name of the business
  • Business registration number
  • Date of incorporation
  • Address where most of the day to day running of the business is carried out
  • Contact phone number
  • Business e-mail /website address

About the business

A brief description of the main, and any secondary activities of the UK entity (this should relate specifically to the UK entity/operation rather than the group as a whole).

A SIC (Standard Industrial Classification Code) will be required as part of the registration process. A comprehensive list of these is available here.

About the directors of the entity

Have any of the directors of the UK entity been involved in any other business in the UK or Isle of Man? If so, the name(s) of the business(es) and if VAT registered the VAT registration number (s) and indicate whether or not the businesses are still trading.

UK Bank Account details

This is an important part of the registration process. It is a threshold test by HMRC to see whether the company has a UK based bank account. This is because of suspected fraudulent activity, known as carousel fraud. You can read further on this here.

The requirements are:

  • Name of the UK bank account
  • Sort code
  • Account number
  • Name of bank/building society

There is also an option to state that a bank account is in the process of being opened.

As part of our service offering for VAT Registration, we also register a Client Trust Account. A designated Client Account that can be used for our client and VAT Registration, including payment of VAT to HMRC, once registered.

VAT registration date

The date you like the registration to start? Registration can normally be backdated to the company registration date if a UK Company or a sensible date immediately prior to trading if an overseas company.

Anticipated business transactions in the next 12 months

An estimation of the value of the sales/supplies during the next twelve months broken down by:

  • to other UK entities
  • to EU entities
  • Sales outside to the rest of the world

Finally, HMRC would like to know if you expect to buy goods from other EU member states in the next 12 months. If so, the total estimated value.

As part of the application process, the officer or director should provide a copy of their passport and two forms of home address verification (dated within the last three months). One of the address items can be a supporting note from us, as we are registered under the Anti-Money Laundering Regime with HMRC.

We can register and support your company with the on-going compliance of returns with HMRC including calculating what, if any, payment is due. For further information on this, please get in touch info@paulbeare.com or call +44 207 183 8786.