VAT (Value Added Tax) can be difficult to understand, and the regulations surrounding it are constantly changing. There are many rules and exceptions to navigate, but with our help, you can be sure that your VAT obligations are met without costing you the earth. At VAT Recovery, our team of experienced accountants are here to provide you with the advice and ongoing support you need to make working out your VAT returns a breeze. Our friendly and knowledgeable chartered accountants understand the ins and outs of VAT regulations. We are more than happy to work alongside you to process your returns and settle your VAT accounts. Get in touch with one of our VAT specialists today and find out how we can help you!
VAT, also known as Value Added Tax, is a type of tax added to the purchase price of goods and services sold by VAT-registered companies. While it may seem slightly unnecessary and confusing, there’s a good reason for VAT payments – to generate more money for the Government and distribute the tax burden across the various stages of production and consumption. As a VAT-registered business, you have the benefit of being able to claim VAT for business expenses and purchases when you file your VAT return.
VAT returns (much like tax returns) are unavoidable, unfortunately. However, they are necessary to ensure your business is keeping in line with its VAT responsibilities. So, what is a VAT return? And why should you be submitting one? HMRC requires all VAT-registered companies to submit VAT returns online to inform them of how much VAT their business has charged and how much VAT they have paid to other companies. You will usually be required to submit your VAT return every three months, which is known as your VAT period.
At present, businesses with a taxable turnover of over £85,000 (£90,000 from 1st April 2024) in a 12-month rolling period must register for VAT. This includes both Limited Companies and Sole Traders.
There are a number of VAT schemes available to benefit small and medium businesses. At VAT Recovery, we can help you find the right one for your business.
This is the most traditional method, but it can make keeping records more complex. The aim is to pay HMRC the difference between the VAT your business charges on sales and the VAT you’ve paid on purchases.
If your business has an annual turnover under £150,000 per year, then you may be eligible to join the Flat Rate Scheme. We’ll help you decide whether this is the right VAT scheme for your business, as you may be able to pay a lower VAT rate to HMRC depending on the type of business you own.
This scheme aims to ease the monthly payments for your business by requiring you to make advanced VAT payments based on the estimated annual turnover. Although, if you regularly claim VAT, then this scheme might not be for you. There are many more schemes available, including more specialist schemes. With the help of our friendly team, we’ll make sure you pick the VAT scheme best suited to your company.
Your business might need a VAT accountant to help handle your VAT affairs in a smart way. Working out your VAT calculations can be very confusing – some goods and services are VAT exempt, whilst others aren’t. You’re probably beginning to wonder what all this really means. That is where we come in! Our experienced VAT team can ensure that you’re getting the most out of VAT without paying over the odds. You’ll have peace of mind when working with us, as we’ll ensure your business complies with its VAT obligations, preventing fines and other VAT issues. We can also advise on your individual circumstances and whether there might be any beneficial VAT schemes available to you. Ultimately, we’ll be your friendly helper to keep your business on the right track with its taxes.
If you are not yet registered for VAT, then not to worry. The process of registering for VAT is relatively straightforward, and at VAT Recovery, we can help every step of the way. First and foremost, you will need to use the HMRC Online Services to start your VAT registration – you will also need a handful of important business details to complete the process, including your business name and industry, bank details, Company Registration Number and UTR number. These details will vary for individuals, but we can help you during the registration. Once you are VAT-registered, you will be provided with a unique VAT Registration Number which will be used for future tax purposes. FAQs If you want to know more about how a VAT accountant could be exactly what you need, take a look at some of our frequently asked questions below.
The clue is in the name. Making Tax Digital is a Government initiative which has been put in place to support HMRC and its plan to digitise the tax system in the UK. The goal is to encourage business owners and self-employed individuals to keep digital records of their taxes and process their VAT returns online. If you own a VAT-registered business, then you will now be required to keep digital records and submit VAT returns through compatible software. HMRC will automatically sign up future businesses to Making Tax Digital. At VAT Recovery, we can help you integrate accounting software that works alongside the MTD initiative, ensuring you stay compliant.
Working towards a deadline can be stressful, which is where a well-organised and experienced VAT accountant can be handy. The date for submitting your VAT return and when you will need to pay HMRC is usually one month and seven days after your accounting period. As with any deadline, you should always allow time to submit your files and ensure payments are processed correctly. Organised business owners will be happy to know that you can find out when your VAT payment date is and any additional important information on your Government Gateway account.
Figuring out how much money you owe to HMRC in preparation for submitting your VAT return is a relatively simple process. You will need to calculate the difference between the VAT charged on your goods and services and the VAT your company pays on business purchases. Keeping records of all sales and purchases will make working out your VAT return much less complicated.
We work with a wide range of businesses on a national level and can give you the friendly and exprt accounting advice you need.
At VAT Recovery we are able to provide our clients with a wide selection of services.
You didn’t get in to business to fiddle around with payroll and HMRC forms. We offer FREE discovery calls to individuals, sole traders, limited companies and professional businesses.
