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Set up your company and its VAT shape

Set up your company is a single form that tells the app what kind of company you run and how it handles VAT. Your reports are built from your answers, so it is worth taking a moment to get them right.

Set up your company at 1280

  1. Sign in for the first time. With no company yet, the app takes you to Set up your company.
  2. Enter your Company name, and your Companies House number if you have it to hand.
  3. Choose your VAT scheme: Flat Rate Scheme, Standard Scheme or Not VAT registered.
  4. If you are VAT registered, enter your VAT number, VAT registered on and VAT quarters end. The quarter setting decides the periods your VAT return covers.
  5. On the Flat Rate Scheme, enter Flat rate now. If your rate will change on a future date, tick My rate changes on a future date, then enter the New rate and the date in From.
  6. Choose How your VAT turnover is counted, which sets when a sale counts towards your VAT. The Flat Rate Scheme offers Invoice (basic) and Cash basis. The Standard Scheme offers Invoice accounting and Cash accounting.
  7. Read What will be set up. It shows your company, scheme, quarters and rate history before anything is created, so you can correct a mistake first.
  8. Press Create company. To review the result later, use the company control in the header to open Company details.

Cases

  • Not VAT registered hides every VAT field, and Company details then shows no registration, quarter or method rows.
  • A registered scheme without a registration date is refused with "Enter the date you registered for VAT." and no company is created.
  • A negative rate, a rate above 100% and a rate with more than two decimals are refused. A rate of zero is accepted.
  • Changing the scheme resets the turnover method to that scheme's starting choice. Changing anything else keeps your choice.
  • The Standard Scheme shows no flat rate field and no rate history.
  • If any part of set-up fails, no company is created, so you are never left with half a setup.
  • Company details only displays what the app holds. It has no edit or delete action.

Good practice

  • Enter the rate you pay now. If it will change on a known date, such as the end of a first-year discount, add the new rate and its start date straight away. The form notes that first-year rates are 1% lower, and the app uses the rate in force on each date.
  • Choose the turnover method deliberately. The Flat Rate Scheme starts on Cash basis, and the app never assumes the invoice basis on your behalf.
  • After creating the company, open Company details and compare the registration date, quarters and rate history with your VAT certificate.