Industry sector: Consumer services

Pet grooming: VAT repayments


VAT repayments may be made to VAT registered businesses if they pay out more in VAT on their purchases than they charge on their sales.

This might happen if, for example, you were VAT registered and spent a lot on business equipment but didn't take much money in the early days of trading. You complete a VAT Return every quarter, setting the VAT you have had to pay against the VAT owed to HM Revenue & Customs (HMRC). If a repayment is due to you it will normally be paid direct into your business bank account a month or so after you have submitted the Return claiming it.

It's worth bearing in mind that if you're planning to work alone, perhaps on a mobile basis, then it's quite likely that your business income will be less than the VAT registration threshold - at least to start with. So you may well not need to register for VAT.

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