New HMRC tool helps businesses estimate VAT payable on registration

HMRC has launched a new VAT registration estimator tool.

The tool allows businesses to input relevant data and experiment with different input and output figures – it is meant to help small businesses decide whether registering for VAT is the right option. HMRC does not record the details that are fed into the estimator.

The VAT registration estimator was developed after receiving feedback from small businesses suggesting that an online tool would help identify when their turnover could require businesses to register for VAT and its effect on profits.

‘The VAT registration estimator has been developed in partnership with small businesses and trade representatives who tested the online tool and gave feedback before its launch ’ said Jonathan Athow HMRC director general for customer strategy and tax design. 

Stakeholders including members of the Administrative Burdens Advisory Board (ABAB) volunteered to test the tool and made comments to HMRC...