This tool has been designed by HMRC to give an insight into what your return may look like. It can be used multiple times to create different scenarios such as higher sales in seasonal periods or purchasing large quantities of stock in preparation for seasonal periods.

You will need information on your sales and costs beforehand so you can create the most realistic example possible. This will include sales totals for each VAT rate, cost totals for each VAT rate and overheads.

If you are close to the VAT registration threshold of £90,000 you can use the link below to see how this will impact your business. Please note, if your taxable turnover has exceeded £90,000 you will need to register for VAT. If your taxable turnover is below £90,000 you can still register for VAT, this is known as voluntary registration.

https://www.gov.uk/guidance/check-what-registering-for-vat-may-mean-for-your-business

If ever you’re in doubt, please feel free to contact Oscar on 01227 277667, or by emailing him at o.wood@mphaccountants.co.uk.