VAT ServicesVAT

VAT legislation is complex, therefore it is important to identify VAT planning opportunities and ensure that all VAT compliance matters are dealt with. It is important to consider VAT even for small or start up businesses as voluntary registration may be beneficial or there may be a VAT accounting scheme that would ease the burden of VAT registration.

Should I be registered for VAT?

Value Added Tax (VAT) is a tax charged on the sale of most goods and services supplied by a VAT registered individual. VAT is charged at either 0% on for example books, newspapers, and construction of new homes. Reduced rate of 5% charged on domestic fuel and power and the standard rate currently 20% which applies to everything that isn’t zero, reduced rate or exempt. Exempt sales are for example, sales of some land and property, insurance and some postal services.

If your sales exceed the VAT threshold (currently £82,000) in the previous 12 months or are expected to in the next 30 days. There is also an option to register for VAT even if your sales have not reached the current threshold allowing you to claim back VAT on purchases which can be beneficial if:

  • You make zero rated supplies – because your customers will not have to pay VAT
  • Your customers are themselves VAT registered – because they may be able to claim back VAT you charge them

VAT Schemes

There are various schemes which can make it easier for a VAT registered business. It is important to speak to an accountant or business adviser to see if there is a scheme that will benefit you.

The Annual Accounting Scheme will allow you to do an annual VAT return reducing the burden of monthly or quarterly return deadlines.

The Cash Accounting Scheme  will allow you to account for the VAT based on the invoices you have received payment for on sales and have made payment for on purchases. This allows you not to have to pay over the VAT on sales where you have not received the cash, improving cash flow and giving instant bad debt relief.

Services

Testimonials

Recently switched to Catherine Bennett as my accountant and was very pleased with the professional, prompt and efficient service she provided for my business accounts and personal tax return.

Mrs L Brooks

Catherine worked as an Accountant for me in 2012, easing me through the maze that is Tax and finance for the self-employed! The skills and knowledge that Catherine brought to the table were second to none, and Catherine completed my accounts with minimum fuss and great attention to detail. Working with Catherine was really easy due to her friendly, helpful persona and willingness to listen and explain everything in a way that I could easily understand. I would have no doubt that I would use the …

Mr K Walker

this is the first time that I have used Catherine to do my tax return and I was very glad that I did. She provided an excellent service with a very quick turnaround and was also a very pleasant person to do business with. I would have no hesitation in recommending her.

Mr B Head

On starting my stationery business, I wasn’t sure whether I needed an accountant but I got in touch with Catherine and decided to meet her for a little chat. From the outset Catherine was so lovely and she explained lots of things that I wasn’t even aware of. We’ve just done my first year of accounts and Catherine managed to get me a tax rebate set off against my start-up costs of the previous year. This is something I definitely wouldn’t have been able to do on my own, so she is definit…

Mrs S Want

I can’t think of any ways to improve your service!

Mrs M Hancock