VAT

VAT – What is it?

VAT is a tax on consumer expenditure and is collected on business transactions, imports and acquisitions.

Registration

You must register your business for VAT if you supplied taxable goods and services with a total value of more than £67,000 in the last 12-month period, or if you predict that you will supply taxable goods and services valued at more than £67,000 in the next 30-day period alone.

Certain types of goods and services are not taxable and are therefore exempt from VAT, e.g. insurance, loans, or some types of education or training. If your business supplies only goods and services that are exempt, then you can't register and claim the VAT back on your purchases.

There are fines and penalties for missing these deadlines for registration so recognising when your business needs to do this is crucial.

Administration

Once you are registered whenever you buy or sell anything in the course of your business, you will have to charge VAT on your sales, keep proper VAT records on your incoming and outgoing transactions and pay VAT to HM Revenue & Customs (HMRC).

Starting from your date of VAT registration you will need to issue VAT invoices

- You will need to keep a record of the amount of VAT you charge in your records. This is your output tax.

For your purchases:

- You must have a VAT invoice for all your purchases to be able to reclaim any VAT paid

You will need to keep a record of the amount of VAT you have paid in a separate column in your records. This is your input tax.
Voluntary registration

Even if your turnover is below the registration threshold you could consider registering voluntarily for VAT.

How can we help?

Initially we can assist you in registering your business for VAT and if required register you for online filing which in itself offers several benefits for your business.

We can complete your VAT returns on your behalf, ensuring that the correct amount of VAT is reclaimed and you have charged the correct amounts to customers.

Records are kept up to date and in order and Vat returns are submitted in time. This may help to avoid any potential fines and penalties that may arise in an investigation.

We can also offer you the best advice ensuring that your VAT operation runs as smoothly as possible leaving you to continue running your business as hassle free as possible.

Please call us to arrange a meeting to go through your individual business needs.