|
VAT Returns
A Value Added Tax (VAT) is a form of consumption tax. As far as the buyer is concerned, it is a tax on the purchase price. For the seller, it is a tax only on the value added to a product, material, or service.
But businesses can claim the VAT amount back on purchases, or with special HMRC VAT schemes your business may be able to make a profit out of VAT charged compared to payable. |
How to get VAT Registered and what to
consider.
If your business is involved in selling supplies of taxable goods or services then you must register for VAT as soon as your turnover (sales) reaches the statutory registration threshold. You can also register for VAT voluntarily, even if your turnover is below the statutory registration threshold
VAT can add much desired credibility to your business and it can also be of benefit if the situations below apply to your business:
If most of your customers are VAT registered and can claim back the VAT that you have added to your sales.
If none of the above apply then it may be better to delay registration until you have to.
Important VAT registration issues
Please contact us immediately for assistance if you do find yourself in this situation. It is highly recommended to contact us as soon as possible to avoid any penalties.
Special Schemes
VAT can often cause cash flow problems especially for small businesses. You may end up paying VAT added to sales invoice before you actually receive money from the customers. Most registered traders pay their VAT after deducting input tax paid to the suppliers. The most common practice is to do a quarterly VAT return.
In acknowledgement of this issue, HMRC has created a number of “Special Schemes” to ease the burden of cash flow problems faced by small businesses especially when they are just starting-up.
The most helpful schemes are:
If your business is involved in selling supplies of taxable goods or services then you must register for VAT as soon as your turnover (sales) reaches the statutory registration threshold. You can also register for VAT voluntarily, even if your turnover is below the statutory registration threshold
VAT can add much desired credibility to your business and it can also be of benefit if the situations below apply to your business:
- If the nature of your trade means that your costs or purchases include VAT.
- If your supplies are mainly zero rated for VAT purposes.
If most of your customers are VAT registered and can claim back the VAT that you have added to your sales.
If none of the above apply then it may be better to delay registration until you have to.
Important VAT registration issues
- Never add VAT to your sales invoices UNLESS you are registered – to do so is a criminal offense.
- If you do need to register avoid delay, otherwise you will incur penalties and interest charges, as well as having to account and pay over the VAT due from the time you should have been registered. Unfortunately, you may not be able to recover the outstanding VAT from your customers.
Please contact us immediately for assistance if you do find yourself in this situation. It is highly recommended to contact us as soon as possible to avoid any penalties.
Special Schemes
VAT can often cause cash flow problems especially for small businesses. You may end up paying VAT added to sales invoice before you actually receive money from the customers. Most registered traders pay their VAT after deducting input tax paid to the suppliers. The most common practice is to do a quarterly VAT return.
In acknowledgement of this issue, HMRC has created a number of “Special Schemes” to ease the burden of cash flow problems faced by small businesses especially when they are just starting-up.
The most helpful schemes are:
How we can help
If you or your business are already VAT registered and need your VAT returns calculated and submitted to HMRC. Then our expert accountants are at hand to ensure you pay the correct amount of VAT for the period and or claim back as much VAT as is allowed.
We also provide tailored VAT advice, help to register clients for VAT, complete and submit your VAT returns for you. And in case you are in trouble with the VAT man we are also experts in helping resolve issues with HMRC.
Make sure to get in touch by either calling 0800 043 4051 or filling in the contact form.
We also provide tailored VAT advice, help to register clients for VAT, complete and submit your VAT returns for you. And in case you are in trouble with the VAT man we are also experts in helping resolve issues with HMRC.
Make sure to get in touch by either calling 0800 043 4051 or filling in the contact form.