You can apply to join the VAT Annual Accounting Scheme by post or online, but first you should check your eligibility.
Who Is Eligible to Join the VAT Annual Accounting Scheme
Anyone who is VAT registered can join the scheme if their taxable turnover is £1.35m or less over the next 12 months.
What is Taxable Turnover? This is the value of your sales that would be relevant for charging 20%. To calculate whether you should be VAT registered you would need to exclude any sales that would be exempt from VAT (such as insurance or some financial services).
You cannot use the VAT Annual Accounting Scheme if:
- you have left the scheme in the last 12 months;
- you’re is part of a VAT registered division or group of companies;
- you’re behind on your VAT Returns or payments;
- you’re insolvent.
How to Join the VAT Annual Accounting Scheme
You can apply to HMRC to join the scheme either online or by post.
How to Apply Online
If you are new to VAT you can select to join the scheme as part of your online application form.
If you are already VAT registered, then you can complete an online form and submit it as part of your business account.
If you apply online you will receive confirmation that you have been accepted to join the scheme within your online account, so keep an eye out for notifications that you have received a new message.
How to Apply By Post
If you need to apply by post you can print and post a form VAT600 AA to the address below:
HMRC National Registration Unit
77 Victoria Street
You may need to include a Direct Debit form (VAT623) with your application, if you choose to pay in this way.
HMRC will contact you by post to confirm your application has been successful, if you applied by post.
Accountant In Your Inbox
I'll help you to make more profits, pay less tax and stay on the right side of the rules. Enter your email address to connect with me!