VAT Return & VAT Advice

Value Added Tax is a hideously complex and onerous tax regime imposed on businesses in the UK. It is an indirect tax charged on taxable supplies of goods and services made in the UK by VAT registered businesses. UK VAT registered businesses pay VAT on supplies of goods and services and claim credit for VAT paid to other businesses for goods and services purchased.

The net difference of VAT tax is either payable to HMRC or claimable from HMRC as reflected in a VAT return usually filed on a quarterly basis.

VAT Registration

VAT registration is compulsory for all businesses selling ‘taxable’ goods and services in the UK if their total turnover for the previous 12 months was more than the registration threshold (currently £77,000) or they expect it to go over that level in the next 30 days. If you were to take over a business and the combined entity’s taxable supplies exceeded this threshold level in the last 12 months then too VAT registration is compulsory.

You also need to register for VAT in many other situations as well, for example, if you make taxable supplies to non-VAT registered customers in the UK from another EU country.

VAT Accounting

There are three ways in which VAT can be accounted for: Cash Accounting, Flat Rate Scheme and Annual Accounting Scheme.
Under cash accounting, businesses, with an expected taxable turnover in the next 12 months of not more than £1,350,000, account for VAT tax only on a ‘payment and receipt’ basis. VAT is accounted for only on invoices paid and received.

This is suitable where it takes longer to collect invoices and where bad debt levels are relatively higher. Annual Accounting Scheme is open to businesses with an expected taxable turnover not exceeding £1,350,000 in the next 12 months.

Agreed payments based on previous year turnover are regularly made and a single annual return is filed at the year end. As choice of a particular accounting scheme depends on a variety of factors it is best to seek professional advice before deciding which one suits a particular business situation.

VAT Services

We provide comprehensive VAT advice followed by efficient and cost-effective VAT services including:

VAT registration
Preparation of your VAT Return and online filings with HMRC
Advice on the most appropriate scheme; flat rate , cash accounting or annual VAT returns
Advice on VAT planning and administration
VAT control and reconciliation
Liaising with HMRC on your behalf
Dealing with VAT enquiries or investigations
Dealing with VAT compliance issues