VAT Registration and Filing

If you fail to provide a registered office address that complies with these requirements, your company may be struck off the register at Companies House.

A registered office address service is suitable for the following groups: ● UK-based business owners UK business owners can use a commercial registered office address instead of making their residential address public, ensuring privacy. ● Overseas investors or entrepreneurs If you wish to register a UK company but do not have a UK address, a registered office address service can help you meet legal requirements. ● Business owners who want to avoid handling company mail Some registered office address services include mail management and forwarding, reducing administrative burdens on business owners.

When setting up a limited company, you must provide a registered office address and an email address. The registered address must: ● Be a physical address in the UK ● Be in the same country where your company is registered (e.g., a company registered in Scotland must have a registered office address in Scotland, and the same applies to Northern Ireland) ● Comply with any relevant regulations If you use a service provider’s address (such as an accountant or solicitor) as your registered office address, it must meet all these requirements.

A registered office address is where your company receives official correspondence from the UK government, HM Revenue & Customs (HMRC), and Companies House. The main benefits of using a registered office address service include: ● Protecting Privacy If you do not wish to make your home address public, using a commercial registered office address can protect your personal privacy and prevent your residential address from appearing on the Companies House website. ● Compliance with UK Legal Requirements Under the Companies Act 2006, all UK-registered companies must provide a registered office address which must be located within the UK. ● Mail Handling and Forwarding Professional registered office address services often include the receipt, scanning, and forwarding of official government correspondence, ensuring that you do not miss important postal correspondence. ● Suitable for Non-UK Residents and Overseas Entrepreneurs If you are an overseas individual or entrepreneur looking to register a UK company but do not have a local UK address, a registered office address service is the best solution to obtain a valid address. ● Enhancing Corporate Image Using a registered office address in London or another business hub can enhance your company's image and boost trust among clients and investors.

Once all required documents are prepared, you can submit an online application through HMRC's website. Processing usually takes up to 30 working days, but this may vary depending on HMRC's review process and the completeness of the application.

In the UK, you can choose to file VAT returns monthly, quarterly, or annually, depending on the size of your business and your preferred reporting frequency. Generally, we recommend quarterly filing.

VAT rates vary depending on the type of goods and services. The main VAT rates are: Standard Rate (20%), Reduced Rate (5%), Zero Rate (0%) and Exempt Supplie. Please consult TB Accountants for specific advice.

HMRC uses a points-based penalty system for late VAT submissions. Each late submission will accrue a penalty point. Once a business reaches the penalty threshold of four points, a £200 fine is issued. Subsequent late filings will then incur an additional £200 fine.

Yes. Once you’re registered for VAT, you must submit VAT returns even if you have no VAT to pay or reclaim.

You must register for VAT if: ● Your taxable turnover in the past 12 months exceeds the £90,000 VAT threshold. ● You expect your turnover to exceed £90,000 in the next 30 days. Additionally, you must register for VAT regardless of your taxable turnover if: ● You are based outside the UK. ● Your business headquarters are outside the UK. ● You supply any goods or services to the UK (or plan to do so within the next 30 days). Businesses based in the UK trading below the threshold can choose to register voluntarily in order to reclaim input VAT.

From 1 July 2021, the UK introduced new VAT rules requiring online marketplaces (e.g. Amazon, eBay) to manage VAT on behalf of sellers: ● Marketplace Sellers: If selling through an online marketplace that meets VAT requirements, the platform is responsible for collecting and remitting VAT to HMRC. ● Direct Sellers: Businesses selling directly via their own websites must register, collect, and submit VAT independently. E-commerce sellers can reclaim VAT on purchases and, in some cases, obtain VAT refunds for exported goods.

● Retrospective VAT Charges: HMRC can backdate VAT liability, requiring businesses to pay VAT on all past transactions that should have been taxed. Late payments may also incur interest and late fees. ● Fines: The penalty varies depending on how long VAT registration has been overdue and the sales revenue during the period of non-compliance. The fine can range between 5%-15% of the VAT owed, or higher in severe cases.

If you sell goods through online platforms (such as Amazon, eBay, etc.) in the UK or EU countries, and your business involves the import or export of goods, you will also need an EORI number to handle customs procedures.

Any company importing/exporting goods from/to the UK must obtain an EORI number. This is also necessary for customs clearance (e.g. importing inventory into the United Kingdom). Following the UK’s withdrawal from the EU, UK EORI numbers are no longer valid for use in the EU, and vice versa. An exception applies to UK businesses with a registered office in Northern Ireland. Businesses based in Northern Ireland can apply for a UK EORI with the ‘XI’ prefix – this remains valid in the EU.

In the UK, the EORI number is issued by HMRC (Her Majesty’s Revenue and Customs). In EU countries, EORI numbers are usually provided by the national customs authorities.

For traders engaged in cross-border trade within the EU — including UK sellers exporting goods to the EU and sellers importing or exporting goods within the EU — it is also mandatory to register for an EORI number.

Each EU member state has its own registration system, but all EORI numbers are valid across the EU. If you conduct business in multiple EU countries, it is recommended to register in the first country where your customs activities take place. If you are a seller from a non-EU country and wish to sell goods to the EU or the UK, you will need to register for an EORI number in the respective country. For example, if you are shipping goods from China to the EU, you must register for an EORI number in an EU country in accordance with local customs requirements.

● Application within the UK: Typically, HMRC processes applications within 1–3 working days after submission, and applicants usually receive their EORI number shortly thereafter. ● Application within an EU member state (for an EU EORI number): Processing times may be longer, usually taking 5–10 working days, depending on the efficiency of the local customs authority. If all documents are complete and there are no special issues, the process is very quick. However, if information is incomplete or additional documents are required, it may extend the approval time. TB Accountants can assist you in preparing all required documents and follow up on the process to ensure you receive a valid EORI number as quickly as possible.

Compared to self-employment, registering a UK company not only affects how you hire employees but also enhances your brand’s commercial credibility. Most importantly, it provides liability protection and tax advantages.

A company must have a registered office address within the UK, which serves as the official address for statutory correspondence. This address is used to receive official letters, tax notices, court summons, Companies House documents, bills, bank documents, and so on. Without a valid registered address, your company may miss important legal and financial notifications, which could affect business operations. If you do not have a physical office, you can use a registered office address provided by an agent. We offer this service.

The choice of company type depends on various factors, including business size, tax planning, number of partners, and whether you intend to go public. Examples include: ● Private Limited Company (LTD) ● Public Limited Company (PLC) ● Unlimited Company ● Limited Liability Partnership (LLP)

After registering your company, you must meet ongoing compliance and reporting obligations to ensure legal and tax compliance. ● Confirmation Statement (Annual Return) ● Annual Financial Statements (Annual Accounts) ● Corporation Tax Filing ● PAYE & National Insurance Contributions ● VAT Returns (if applicable)

As a limited company, you can deduct business-related expenses in your tax filings, which reduces the company’s taxable profits and lowers your tax burden. Additionally, you may benefit from Capital Allowances and the Employment Allowance to help reduce costs.