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How to 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 see this article.

Before you start

Before you can set up an additional VAT registration period, you will need to have set the previous VAT registration period as de-registered for VAT and entered a de-registration date. You will also need to ensure that the final VAT return for the previous VAT registration period has been filed to HMRC or marked as filed.

You’ll need to have full (level 8) access to your FreeAgent account to create an additional VAT registration period.

Please note that once you set up your new VAT registration period, any changes you make to transactions in your previous VAT registration period won’t be included on a VAT return in your new VAT registration period. For more information, please see this article.

Update your VAT settings in FreeAgent

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.

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Under the ‘VAT Settings’ tab, select ‘Registered’ from the ‘Are you VAT Registered?’ drop-down menu in the ‘VAT registration status’ area. Please note that the ‘VAT Settings’ and ‘Previous Registration’ 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.

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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.

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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’.

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3. Enter your new VAT registration details

Next, enter the date that your business re-registered for VAT with HMRC. 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.

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Enter the date that the first VAT return period of your new VAT registration ends.

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Select whether your business will be submitting ‘Monthly’, ‘Quarterly’ or ‘Yearly’ returns from the ‘Frequency of returns’ drop-down menu.

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4. Enter your new VAT return settings

Finally, enter information about your VAT return settings.

Select whether your business is ‘Cash’ accounting for VAT or ‘Invoice’ accounting for VAT from the ‘VAT Accounting Basis’ drop-down menu.

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If your business is not using the VAT Flat Rate Scheme, select 'No' for ‘Are you on the Flat Rate Scheme?’.

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If your business is using the VAT Flat Rate Scheme, select 'Yes' for 'Are you on the Flat Rate Scheme?' and choose the relevant scheme from the ‘Which Flat Rate Scheme?’ drop-down menu. Please note that you can edit individual VAT returns if your Flat Rate Scheme details change.

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Select how far back you would like FreeAgent to look for your pre-registration expenses. 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.

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Once you’ve entered all of the relevant information, select ‘Save Changes’ at the bottom of the screen to complete the process.

What happens next?

After creating an additional VAT registration period, FreeAgent will start preparing your VAT returns for the new period. These will appear on your VAT ‘Statement of Account’, which can be accessed by navigating to the ‘Taxes’ tab at the top of the screen and selecting ‘VAT’ from the drop-down menu.

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How to view previous VAT registration periods

To view details of your previous VAT registration periods, select 'Settings' from the drop-down menu in the top-right corner and then select 'VAT Registration' from the 'Accounting, Tax & VAT' section.

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Next, select the ‘Previous Registrations’ tab at the top, below ‘UK VAT Registration’.

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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.

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