You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.
Advantages and disadvantages of VAT grouping.
At Connected Accounting we can advise companies in the St Albans area about group VAT registration. Here are some of the issues to consider.
VAT grouping occurs where two or more companies or limited liability partnerships (LLPs) are treated as a single taxable “person” for VAT purposes. A VAT group is treated in the same way as a single company registered for VAT on its own.
An unincorporated body, such as a sole trader or partnership, is also permitted to join a VAT group provided it makes taxable supplies and controls one or more companies or LLPs.
In general, the members of the group each have to have an establishment in the UK and be under common control. There are special conditions for VAT groups with an annual turnover of more than £10 million.
Advantages of group registration are:
As with most other areas of the tax system, VAT Groups are subject to detailed anti-avoidance provisions.
If you’re based in the St Albans area and would like further advice on VAT group registration, please contact Connected Accounting.
15 Oct 2021
A joint statement issued by 41 of the UK's trade associations has called on the government to reform business rates in order to help unlock green investment.
14 Oct 2021
HMRC has reminded self assessment taxpayers that the deadlines for filing 2020/21 tax returns are now approaching.
13 Oct 2021
Chancellor Rishi Sunak will have 'little room for manoeuvre' in this month's Budget and Spending Review, according to the Institute for Fiscal Studies (IFS).
12 Oct 2021
The Tax Faculty at the Institute of Chartered Accountants in England and Wales (ICAEW) has urged the government to use the upcoming Autumn Budget to help accelerate work on building a modern UK tax system.
11 Oct 2021
A survey carried out by the Institute of Directors (IoD) has found that three in ten businesses plan on employing fewer people as a result of the increase in national insurance contributions (NICs).
08 Oct 2021
Business groups have warned Prime Minster Boris Johnson that the UK economy is fragile and the recovery from the coronavirus (COVID-19) pandemic remains on shaky ground.
07 Oct 2021
The Institute of Directors (IoD) has called on the government to introduce a tax super-deduction to plug an investment gap in retraining.
06 Oct 2021
The Federation of Small Businesses (FSB) has warned that tax rises could threaten the UK's ongoing recovery from the coronavirus (COVID-19) pandemic.
Get in touch with us today for a fresh perspective and a free consultation.