• Company law basics
  • What is a limited company?
  • Types of companies
  • Limited liability
  • Does a business have to be a limited company?
  • Advantages and disadvantages of running a business as a company?
  • When must a company be registered for VAT?
  • What does it cost to set up a company?
  • What information must a company send to Companies House?
  • Introduction to articles
  • Registered office
  • Changing the registered office
  • Finding a company's registered office
  • Can a company do everything?
  • What are a company's objects?
  • Company seals
  • Companies House
  • Information required on company notepaper
  • Information required on websites, emails and faxes
  • Annual return
  • Company accounts
  • Incorporating an existing business
  • Ready made companies
  • Can a company be moved from one part of the United Kingdom to another?
• Companies legislation
  • Companies Legislation
  • Companies Act 2006 Introduction
  • Accounts, audit and annual returns SIs
  • Articles of Association SIs
  • Company charges SIs
  • Companies House SIs
  • Community Interest Companies SIs
  • Directors SIs
  • Company forms SIs
  • General meeting - shareholders' rights SIs
  • Minority protection SIs
  • Company and business names SIs
  • Overseas companies SIs
  • Political donations SIs
  • Share capital SIs
  • Statutory registers and other records SIs
  • Trading disclosures SIs
  • Companies Legislation before the Companies Act 2006
• Types of companies
  • Types of companies
  • Companies limited by guarantee
  • Community Interest Companies (CIC)
  • Charitable Incorporated Organisation (CIO)
  • Property management companies
  • Dormant companies
  • Converting a company from one type to another
• Registering a company
• Company and business names
  • Company names
  • Changing a company's name
  • Protecting a company's name
  • Passing off
  • Trade marks
  • Trade mark registration
  • Trade mark categories of goods and services
  • What does it cost to register a trade mark?
• Articles of association
  • Introduction to articles
  • Model Articles
  • Table A
  • Updating articles
  • What is a general commercial company?
• Directors
  • What is the difference between shareholders and directors?
  • Directors
  • Number of Directors
  • Appointment of Directors
  • Resignation of directors
  • Removal of a director from office
  • Who can be a director?
  • Directors' service addresses
  • Are directors entitled to be paid?
  • Directors as employees
  • Directors' powers
  • Directors' duties
  • Legal position of a managing director
  • Loans to directors
  • Conflicts of Interest
  • Company secretary
  • Board meetings
  • Appointing a chairman
  • Quorum at board meetings
• Shares
  • What is a statement of capital?
  • Shares - an introduction
  • Authorised capital
  • How many shares should a company have?
  • Classes of shares
  • Alphabet shares
  • Share certificates
  • Dividends
  • What voting rights do shares have?
  • How do people get shares in a company?
  • Issuing shares
  • Pre-emptive rights
  • Transferring shares
  • What happens if a shareholder dies?
  • How much must a company charge for its shares?
  • Issuing shares for consideration other than cash
  • Can a child own shares?
  • Can a company buy its own shares?
• Shareholders
  • What is the difference between shareholders and directors?
  • What rights does a shareholder have?
  • General meetings
  • Must a company hold general meetings?
  • Calling general meetings
  • Who is entitled to attend general meetings?
  • What is the difference between board meetings and general meetings?
  • Proxies
  • Minutes of members' and directors' decisions
  • Types of resolutions
  • Appointing a chairman
  • Quorum at general meetings
• Shareholders' agreements
• Statutory registers
• Company borrowing and debentures
  • Company borrowing
  • Debentures
  • Fixed and floating charges
  • Registering charges
• Partnerships
  • Partnerships SIs
  • Partnership Act 1890
• LLPs
  • Limited Liability Partnerships (LLPs)
  • Limited Liability Partnerships (LLPs) SIs

When must a company be registered for VAT?

A company must register for VAT if the supplies made by the company are subject to VAT and either:

1. turnover has exceeded a prescribed figure, the VAT threshold, in the preceding 12 months; or
2. it is expected that the turnover will exceed the threshold within the forthcoming 30 days.

The VAT threshold is £68,000 (from 1st April 2009) and the standard rate of VAT is 15% until 1.1.2010, but is expected to rise to 17.5% after that date. Some goods and services are taxed at 0% (zero rated).

Following registration with HMRC a company will be given a VAT registration number and must print this number on all sales invoices. Once registered the company must charge VAT at the appropriate rate on all the sales which are subject to VAT.

A company may register voluntarily for VAT and this may be advantageous if the company's sales are substantially of things which are zero rated (e.g. books) or the company supplies only other VAT registered businesses.

Once registered the company must make a quarterly VAT return to Customs and Excise and include with it payment of the VAT due. This is calculated by deducting the VAT the company has paid (the input tax) from the VAT it has charged its customers (the output tax). There are alternative methods of accounting for VAT such as annual accounting.

The HMRC website gives a great deal of information.