VAT (21)

A necessary evil

VAT (Value Added Tax) is tedious, but it cannot be ignored. Start-ups need to understand the basics, because most businesses will have no option about registering for VAT, as soon as their sales reach £58,000 a year.

If you are going to register, you will also have to cope with the paperwork and the deadlines.

Being efficient will minimise the time you spend on VAT. Mistakes or delays can lead to penalties.

This briefing explains:

• How VAT works.
• Whether you need to register.
• How to charge and reclaim VAT.
• How to complete your VAT return.