You cannot afford to make mistakes with your VAT return and we make sure that the VAT man gets everything they require, and on time!
We will prepare your VAT returns quarterly and submit them to HMRC on your behalf.
As your accountant, it is OUR responsibility to you as our client to submit these on time. As long as you provide us with everything we ask for, in good time, we GUARANTEE you won’t ever be fined.
Our VAT services are a natural extension of our Bookkeeping Services.
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Frequently asked questions
Here are some questions we often get asked. If you need any more information, just give us a call and we will be happy to answer your queries.
What is VAT?
VAT (Value Added Tax) is an additional charge made on the sales of goods and services. It’s only made by VAT-registered companies within the UK. The current VAT rate is 20%. By becoming VAT registered, in a way, you become a form of mini tax collector for the HMRC as you’re collecting the funds on their behalf. By doing so, you’re also entitled to claim back the VAT you’ve been charged when buying products and services, which is where it can become very useful for a growing business.
When do I need to register for VAT?
Once your business has a taxable turnover for any consecutive 12 month period of over £85,000, it’s compulsory for you to register for VAT. This rate has been set to remain for two years from 1 April 2018 but it is possible for it to increase in future years.
If you don’t register within 30 days, you might face a considerable fine so it’s important that you register as soon as possible.
What are the different types of VAT schemes?
There are different VAT schemes depending on what suits the business needs, and all will need checking against the HMRC eligibility criteria:
- Standard accounting – VAT is declared and recovered based on the invoice date.
- Cash Accounting Scheme – VAT is declared and recovered based on the receipt/payment date.
- Flat Rate Scheme – A predetermined flat rate of VAT is applied to turnover only.
- Annual Accounting Scheme – Make advance payments towards your VAT bill throughout the year and submit the VAT return annually
- Retail Scheme –for those in the retail industry and often based on a point-of-sale scheme
- Margin Scheme – for those who sell second-hand goods, works of art, antiques and other collectors’ items
What are the advantages of becoming VAT registered?
- You can reclaim any VAT that you’re charged for when you purchase goods or services.
- If you have many business customers, they can claim back the VAT you charge (providing they’re also VAT registered), saving them money and ensuring you look more attractive than a non-VAT registered firm.
- If you know your business is growing rapidly and you’re nearing the threshold, it can be worthwhile registering earlier rather than later. That way, you’re prepared for changes and you can adapt on your terms.
- It also looks good in the eyes of other businesses and clients. You look like a serious contender within your field.
What is the VAT deadline for submitting my return online?
The deadline for submitting the return online and paying HMRC is usually the same. It’s one calendar month and 7 days after the end of your VAT period.
What is a tax investigation?
A tax investigation is when HMRC make enquiries into your tax affairs. Many tax investigations are random. Unusual fluctuations, undisclosed accounts and random spending can also prompt an enquiry into individuals and companies. As your dedicated accountant, we’re here to help you manage any tax enquiries you might receive. We offer a subscription-based protection service that could potentially save the stress, time and professional costs of a tax investigation. Contact us for more information or click here https://viewpointaccountants.clientweb.site/index.html