VAT Management

VAT Accounting Services can prove essential for the smooth running of your business and to ensure you comply with any statutory requirements.

VAT is commonly viewed as a complex area of business, especially by those who feel it has been imposed on them. Not only can we provide VAT Accounting Services to ease the burden of VAT reporting, but we can also identify areas in which VAT registration may be of financial benefit to your business.

Our VAT accounting services vary from providing advice, helping you register for VAT or undertaking your VAT accounting to preparing & filing your VAT Returns, and can be tailored to the needs of your business.

VAT Accounting

Given the various VAT schemes and different VAT rates depending on the goods or services provided, VAT Accounting can be a confusing aspect of any business venture.

Whether you are in the process of registering for VAT or are already VAT registered, in order to avoid the risk of penalties, you need to ensure that your VAT accounting is being undertaken correctly. We can work with you to ensure the accuracy of your VAT accounting. This can vary from providing ad-hoc advice, to maintaining your VAT records on an ongoing basis and the preparation and filing of your periodic VAT Returns.

Accurate VAT accounting will also facilitate any inspection or subsequent investigation should the situation arise.

VAT Advice

Depending on the nature of your business and the level of your turnover, you may be obligated to adopt one of the HM Revenue & Customs VAT schemes, for example the second hand goods scheme by car dealerships.

We can provide you with VAT advice, ensuring you select the optimal VAT scheme for your business. Since VAT requirements and options can vary significantly between large and small companies as well as business sectors & the products and services provided, VAT advice can prove invaluable in navigating the VAT system & avoiding penalties.

Working with you as your business grows, we can also provide you with VAT advice that ensures you are aware of any changes in the VAT obligations of your business. This can involve VAT advice about the appropriate VAT scheme(s) for your business as well as VAT advice about the level of VAT you should be charging on your products / services

VAT Reurns

We also offer a VAT Returns Service, whereby we prepare and submit your VAT returns to HM Revenue & Customs.

In order for us to provide our VAT Returns Service, we first need to receive your formal authorisation to act on your behalf as your agent. This is a straightforward process requiring the completion of a standard form. Once in place, we can then work with you to set up the procedures required for the smooth running of our VAT Returns Service.

Please note that although we can provide the VAT Returns Service, you remain legally responsible for the declaration and the payment of any VAT.

VAT Rates

Standard Rates

The current standard rate is 20%, which is applied to the goods and services that are not included in the other 3 categories.

Reduced Rates

5% of reduced VAT  applied to goods and service including mobility aids for elderly, fuel and power for homes & charities and children’s booster seats

Zero Rates

applied to most food, baby clothes, prescriptions, newspapers, books. Businesses with only zero rated goods and services may not need to register for VAT, but must apply for exemption.

Exempt supplies

goods & services that do not receive a VAT charge, for e.g education, insurance, doctors etc. You are unable to register for VAT if you sell exempt supplies only and may struggle claiming back input tax.

The VAT Flat Rate scheme

How much a business pays/claims from the HMRC depends on the difference of how much VAT is charged to the customers of the business and the VAT the business pays on purchases.

Businesses with a turnover that excludes VAT and is £150,000 or less are eligible to apply to the HMRC for the Flat Rate scheme. Businesses can also register for VAT even if you’re under the turnover threshold of £83,000 in a rolling 12 month period, as sometimes this can be very beneficial financially when on the flat rate scheme.

The scheme includes: a fixed rate of VAT to pay the HMRC, you keep the difference of how much is charged to your customers and how much is paid to the HMRC and you’re unable to reclaim VAT on purchases.

We are able to go through with you, the criteria needed to apply for the Flat Rate scheme and to fill in the forms that are needed by the HMRC.

VAT Services