Registration for VAT is compulsory if your annual turnover exceeds £90,000. However, you can apply for an exception from registration if your turnover has only exceeded this threshold temporarily. This applies to entrepreneurs supplying goods or services within the UK. 

Please note that if you take over a VAT-registered business, your turnover from the last 12 months must be added to the turnover of the business you are taking over when checking if your total VAT-taxable turnover exceeds the registration threshold.

If you are doing business in the UK but your turnover is below the threshold for mandatory registration, you may register for VAT voluntarily. Please remember to regularly check if your turnover has exceeded the threshold for compulsory registration.

Closing a business requires careful planning. First, you must inform HMRC of your intent to close your business. This will enable you to settle matters related to tax and National Insurance. It may also be possible to extend the deadlines for payments or even claim back some tax or National Insurance.

There are different processes to inform HMRC you are closing your business, depending on your status:

• Employers: You must submit a final Full Payment Submission when running your final payroll, in addition to the standard procedure. Employers must also pay all outstanding PAYE tax and National Insurance deductions on a timely basis.
• Shareholders: You may still have to file Company Tax Returns and pay Corporation Tax while closing the business. Shareholders are also required to account for any capital gains made in the closing process through your Company Tax Return.
• Self-Employed and Business Partners: You can find out how to inform HMRC about a change to your business here.
• VAT-Registered Businesses: You must deregister from VAT in the process of closing your business

A Company Tax Return is a document which is filed for each accounting period by companies liable for Corporation Tax. Your company is required to file a return each month, even if it has not made any profit.

A good business plan will focus your mind, and also help secure finance and support. While writing a business plan can be a daunting prospect for potential start-ups, it is not a difficult process. Your plan should clarify your business idea and define your long-term objectives. It serves as a blueprint for running your business and checking your progress.

Each tax year runs from 6th April to 5th April of the next year, and you have until the end of the following January (the 31st) to file your return and pay any tax and national insurance due. You may also have to make a payment on account on 31st January and 31st July.

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