Running a business:
Group and divisional registration
A group registration allows a group of companies to be treated in the same way as a single company registered for VAT on its own. You do not normally account for VAT on supplies between group members.
When you obtain a group registration, you will be given a new VAT number for the group. You cannot keep your old number.
One of the companies is nominated as the representative member, and is responsible for completing the VAT return on behalf of the group. All the companies are jointly and severally liable for the tax due.
A disadvantage of group registration is that various limits apply to the group as a whole, such as:
- the partial exemption de minimis limits;
- the limit for voluntary disclosure of errors
- the limits for the cash accounting and flat rate schemes
- the payment on account limits
A divisional registration allows a company which carries out its business through separate divisions to get a separate VAT registration for each division. It is, however, only available where there would be real difficulties in submitting a single VAT return.
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Where next?
Within VAT ...
- What is VAT?
- Should I be registered for VAT?
- Should I register for a VAT accounting scheme?
- VAT records
- Tax point
- Why you need to pay your VAT on time
- Entertaining and travel expenses
- Bad debt relief and late payers
- Partial exemption
- Correcting errors
- Land and buildings
- When might I have to repay input VAT?
Within Running a business ...
- Accounting systems
- Financial information
- Your business premises
- Remuneration
- Business risks
- PAYE
- Business taxes
General ...
