Accounting information

General

For a small business, just starting, it is normally quite easy to prepare your own accounting records and submit an annual return to The Inland Revenue.

As your business grows and transactions get bigger or more complicated, then more sophisticated systems may be required, together with the help of an accountant or taxation expert.

VAT

You are not required to register for VAT until your turnover reaches £68,000 in any 12 month period (not a calender year, or tax year). As soon as this figure is reached it is a legal requirement that you register for VAT with HM Customs and Excise.

It may be beneficial for certain businesses to register for VAT anyway, particularly if many of the products sold are Zero rated, eg. food items. Also if there are significant business start up costs it may be beneficial to register so that the VAT element can be reclaimed.