Our vat accountants will help you to understand the VAT complexity of your business. VAT (Value Added Tax) is charged on most business transactions. A business will normally pay this on purchases and charge this on their sales. The difference between sales and purchases taxes is payable/reclaimable to HMRC.
The following UK Government webpage goes into quite some detail about the current vat regime, including current VAT rates and thresholds.
This tax is charged at different rates for various transactions, current rates are:
- Standard rate – 20%
- Reduced rate – 5%
- Zero rate – 0%
If your business turnover is above a certain amount (£85,000 for 2019/20, £83,000 for 2016/17), then you have to register for VAT and submit monthly, quarterly or yearly returns. The vat accountants at the Finance Equation can help you determine if your business needs to be registered or not, we can prepare returns and submit them for you as well as give you advice.
There are a number of vat schemes, for example, the flat rate scheme and the margin scheme. The flat rate scheme is designed to simplify your record keeping for sales and purchases. Allowing you to apply a fixed flat rate to your gross sales to determine the vat payable to HMRC. The margin scheme is suitable when you sell second-hand goods. You pay vat on the difference between purchase and selling price. Our vat accountants will help you determine if a particular scheme is to your benefit.
Making tax digital is now here for all VAT registered businesses. This means you can no longer use the government gateway portal to submit your returns. You now have to use HMRC compliant software to submit your VAT returns. Our vat accountants will provide you with leading edge cloud accounting solutions that will submit your returns effortlessly.
Depending on how you trade, value added tax is possibly the most complex tax there is. There are different rules if you trade internationally, there may be reverse charge rules that apply to your business. if you trade internationally on platforms such as Amazon or eBay you may have to register for VAT in a country other than the UK. There are some special rules if you trade in land or property. Often advance planning is essential to make sure you don’t pay more than you have to.
How can we help you?
At the Finance Equation, we are passionate about helping our clients keep more of their money. If you are worried about your overall tax position our VAT accountants can definitely help you navigate the maze.