All businesses with turnover exceeds current VAT threshold of £85,000 must register for VAT and complete and submit VAT returns to HMRC. Usually it’s every quarter unless agreed otherwise to pay VAT.
VAT Services By Total Tax Accountant
Paying VAT is much easier now !
What is new about VAT
VAT, is a broad-based, general-purpose consumption tax calculated on the value added to goods and services. It applies more or less to all goods and services purchased and sold for use or consumption in the UK. Goods sold for export or services sold to customers outside UK are not normally subject to VAT.
Recent changes in legislation with VAT record keeping also known as Making Tax Digital (MTD) has been the recent big changes in recent times. In short this means keeping all records electronically for all your VAT returns and must file these returns using approved HMRC software provider.
Most popular and usual method of VAT accounting method is a Standard rate VAT method. However furthermore there are few more VAT accounting methods/scheme which are alternatives to standard scheme are as follows:
- Annual Accounting method: In this scheme instead of quarterly returns you only submit VAT return annually.
- Flat rate scheme: This scheme allows you to charge full standard VAT to your customers but pay HMRC VAT at reduced rate. Depending on your nature of business different businesses has different flat rates given by HMRC.
- Cash Accounting: This scheme allows you to account for VAT as and when payment is received rather than just an invoice date.
All of the above schemes/methods have their own advantages and disadvantages and some are only available for limited turnover businesses.
So How Can We Help You !
At Total Tax Accountants we can help you to choose the right scheme for your business and assist you with either quarterly or annual VAT returns. With recent changes in legislation it is recommended that professional and expert advisor in on board with you in order to run your business operations smoothly. Many businesses forget to distinguish between VAT money with businesses income and when VAT bills are due then this effects business cashflow. With us we can always keep you on top of your business cashflow with regular updates of your VAT liabilities. Get in touch today for an expert advice.