Update your VAT registration settings when you re-register your business for VAT

This article explains how to set up a new VAT registration period in FreeAgent when you re-register your business for VAT with HMRC after having previously de-registered.

If you’re setting up your VAT registration details for the first time in FreeAgent, please read how to enter VAT registration settings.

1. Change your VAT registration status

Select 'Settings' from the drop-down menu in the top-right corner and then select 'VAT Registration' from the 'Accounting, Tax & VAT' section.

Under the ‘VAT Settings’ tab, select ‘Registered’ from the ‘Are you VAT Registered?’ options. Please note that the ‘VAT Settings’ and ‘Previous Registrations’ tabs will only appear after you’ve completed the steps to de-register for VAT in the original VAT registration period and filed or marked as filed your final VAT return for that period.

2. Enter your new VAT settings

Next, you'll be asked to provide some additional information about your VAT re-registration.

First, enter your new VAT registration number. If your VAT Registration number for your re-registration is the same as previous registration, you would need to add 'GB' before the VAT Registration number to complete the re-registration process in FreeAgent.

If you trade outside of the UK, use VAT MOSS or the domestic reverse charge, select ‘Yes’ for ‘Do you need to use VAT rates other than standard UK ones?’. Otherwise, select ‘No’.

If you receive an error message highlighting that non-VAT invoices have been sent on or after the new effective date of VAT registration, read how to add VAT to historical invoices.

3. Enter your new VAT dates

Next, enter the date that your business re-registered for VAT with HMRC, the date that the first VAT return period of your new VAT registration ends and select whether your business will be submitting ‘Monthly’, ‘Quarterly’ or ‘Yearly’ returns. 

This will enable FreeAgent to use the correct dates for any pre-registration costs that you incurred during the period between de-registering your business for VAT and the effective date of your new VAT registration.

4. Enter your new VAT return settings

Finally, enter information about your VAT return settings.

Select whether your business is ‘Cash’ or ‘Invoice’ accounting for VAT and whether your business is using the VAT Flat Rate Scheme.

Please note that you can edit individual VAT returns if your Flat Rate Scheme details change.

Finally, choose how far back you would like FreeAgent to look for your pre-registration expenses and select ‘Save changes’ at the bottom of the screen to complete the process. 

Please note that if you select a time period that overlaps the previous VAT registration period, transactions from the previous period won’t be included in your new VAT registration period.

FreeAgent will start preparing your VAT returns for the new period. 

How to view previous VAT registration periods

To view details of your previous VAT registration periods, select the ‘Previous Registrations’ tab at the top of the VAT registration settings page.

This will display a list of your previous VAT registrations, including the VAT registration numbers and dates associated with the VAT registration period. Please note that these details will be locked, and will only appear after you’ve completed the steps to de-register for VAT in the previous VAT registration period and filed or marked as filed your final VAT return of that period.