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Benefits to register a business in Scotland

Scottish private company formation with the VAT registration number

Scottish Private Company Formation With VAT Registration

Scottish private company formation with the VAT registration number: if your limited company will have an annual VAT taxable turnover of £83,000 or more then it will need to be registered for VAT. Coddan Ltd can do this on your Scottish private company behalf and can act as your VAT agent.

VAT is currently charged at 20% for most goods and services. Some goods and services are charged at a reduced rate of 5% and others are entirely exempt. Examples of zero rated goods are most forms of food (excepting restaurants), children's clothes, books and prescriptions. If most of your turnover is zero rated then you may be able to avoid registering for VAT. You will have to apply to HMRC for an exemption in this case.

Bear in mind that you can offset the input VAT you have paid on your supplies against the output VAT that you have received from customers. Only the excess output VAT needs to be paid to HMRC. It generally takes about a month to register for VAT with HMRC, but it can take longer if HMRC wish to carry out additional checks on your application. Coddan charge £65.00 to prepare and submit an application for VAT registration on behalf of your Scottish limited company.

If you wish Coddan Formations Agency to act as your company's VAT agent the fee is £500.00 per year. For this Coddan will collect copies of your VAT invoices and other relevant documents and archive them for five years. If HMRC choose to commence a VAT inspection of your business it would take place at Coddan's premises rather than at your place of work.

This makes having a VAT agent an attractive option for people who work from home. For an additional fee, Coddan Formations Agency can submit annual VAT returns on behalf of your company registered in Scotland. If you speak to one of our advisers they will talk you through the available options.