VAT voluntary or compulsory registration
There needs to be details of a company bank account and trading address given with the application and also actual or expected date of starting to trade. If you are intending to trade from serviced offices this may cause H M Revenue & Customs to scrutinize the application more carefully. The current compulsory registration figure is sales in excess of £70,000 in any twelve month period. Late filing of VAT returns or late payment of VAT will result in penalties and interest. Penalties are on an increasing percentage basis for repeated lateness; from 2% to 15% of VAT payable. Interest and penalties will be applied on discovery, by HM Customs and Excise, that compulsory registration has not been applied from the right date. Interest will apply to late correction of errors. It may be beneficial to apply for the flat rate scheme in which you collect 17.5% on your sales and pay to H M Revenue & Customs at a lower rate on sales but do not claim actual VAT on purchases.
