VAT Accountants

Understanding your VAT obligations

VAT can be a real pain for many business owners. Navigating the different schemes and rates and quarterly returns can be a headache – but our VAT accountants can be the answer to your pain.

As a professional firm we know VAT can be complicated. The calculations alone can be enough to put many clients off dealing with their VAT themselves. But there are many benefits to working with our VAT accountants whether you just need some advice or we do all your VAT for you.

VAT Registration

VAT registration is not compulsory for all businesses but you need to know if your business needs to register to avoid fines and penalties. Businesses with an annual turnover of over £90,000 must register for VAT. Registration is not required for businesses with a turnover below £90,000 but voluntary registration is an option. Our team of accountants can help you decide if your business needs to register for VAT and guide you through the process.

Different VAT rates

When your business reaches the VAT taxable turnover threshold you need to register for VAT. You also need to understand the different VAT schemes and choose the right one for your business. Some businesses volunteer to register to improve their tax efficiency and cash flow. But from the start you need to know which VAT scheme to join, how much to charge for your goods or services and how to submit your VAT returns.

Getting VAT wrong can be costly. Getting your return wrong, missing a payment or forgetting a deadline can result in a fine or an investigation.

We know the VAT system inside and out. We can use our expertise to make sure you comply with your HMRC reporting requirements. With us on your side you can be sure everything is above board.

VAT Returns and Record-Keeping

VAT registered businesses must submit VAT returns to HMRC, usually quarterly. The VAT return breaks down how much VAT you owe by showing the amount of output VAT from sales made by your business minus input VAT. The resulting amount is what you owe HMRC but if the input VAT is more than the output VAT you will get the difference back from HMRC. You need to keep accurate records of all sales and purchases to make working out your VAT return less complicated. Our VAT accounting services can help you manage your VAT payments, submit VAT returns and keep your records up to date.

VAT Exemptions and Reliefs

Some goods and services are VAT exempt including healthcare services, education and training, insurance and some financial services. Businesses selling exempt goods and services do not need to register for VAT. There are also VAT reliefs for certain businesses such as the VAT flat rate scheme which can reduce the VAT compliance burden. Our team of accountants can help you decide if your business is eligible for VAT exemptions or reliefs.

Making Tax Digital: VAT Returns

Under Making Tax Digital rules all VAT registered businesses must now report and file their quarterly VAT returns through HMRC approved cloud accounting software. Knowing the VAT payment date is key to stress free compliance as it’s usually one month and seven days after the accounting period. A few businesses are digitally exempt but everyone else has to comply with this new way of doing tax.

As a modern accounting firm we use the best and latest cloud accounting software so we’re more than ready to do your VAT submissions for you. And if HMRC come back with questions about your return we can deal with those too.

International VAT and Brexit

Post Brexit VAT rules for sales to the EU have changed. You may need to register for VAT in the EU country you’re selling to or your customer may handle the VAT payment. Rules vary by country and business type. Our team of accountants can help you navigate the international VAT complexities and ensure you’re up to date with the latest regulations. We can also help you decide when you need to register for VAT and guide you through submitting VAT returns without an accountant.

Deregistering from VAT

Registering for VAT isn’t the only thing. If your business goes below the threshold (or is expected to) you can deregister from the scheme. You need to understand your VAT liability which includes the amount you owe to HMRC for VAT returns. Again you don’t have to do this yourself. We’ll take care of the registration process and keep an eye on your turnover so you stay compliant and we’ll keep you informed every step of the way.

If you need help with your business’s VAT obligations, all you have to do is get in touch. We will take you through the process and your liabilities step-by-step.