i have recently bought an long run business of 23 years (pizzeria) were was vat registered .
at the time of the signing procedure i have not took over the vat number .the account was showing above 2000 a week taking but due to numerous chipys opened who does pizzas too the over all taking is close to 1500 now. overhead is around 500 pound and i have only 2 part time staff.i was wondering do i have to be vat registered ? would the government let the new business starters like me breath for a bit ?or do i have to register straight away and then explain the situation to vat people?
please can i get some adviseeeeeeeeee im confused :(
Try this simple series of questions, at the end it will tell you whether or not you need to register. Looking at the figures you have provided I would say that you should be registered.
The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
Your t/o looks like £1,500 x 52 = £78k, and the VAT reg threshold is £71k. I would suggest getting advice from an accountant. Your best bet may be closing for a session or two - not ideal, but just by tripping over the VAT threshold, you will end up with an annual VAT bill of £10,500 (the VAT included in £71k), with very little in input VAT to offset.
Unfortunately, the VAT registration threshold is simply on turnover and not profit.
The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.