Value Added Tax

Value Added Tax is one of the most complex tax regimes placed on a business – so complex that many businesses inadvertently overpay or underpay VAT. The ever widening scope of VAT, the constant stream of detailed changes to the regulations, and the ever growing demands of Customs and Excise call for a trained professional eye to ensure that you do not fall foul of the regulations and do not pay the more than you need to! We provide an efficient cost effective VAT service, which includes:

  • Assistance with VAT registration
  • Advice on VAT planning and administration
  • Use of the most appropriate scheme
  • VAT control and reconciliation
  • Help with completing and submitting VAT returns
  • Planning to minimise future problems with Customs and Excise
  • Negotiating with Customs and Excise in disputes and representing you at VAT tribunals

VAT Schemes

There are various VAT schemes which mainly apply for small businesses:

  • Cash accounting – If your taxable turnover is under £1,350,000 a year you can arrange to account for VAT on the basis of cash received and paid, rather than the invoice date or time of supply.
  • Annual accounting – You can complete one VAT return per year rather that four if your turnover is under £1,350,000. You must also make nine payments on account throughout the year, and a balancing payment with the VAT return.
  • Flat rate scheme – This is for businesses with a turnover of under £150,000 and saves on administration as you just pay a set percentage of your VAT inclusive turnover based on your business sector rather than accounting for VAT on each individual “in and out”. It can also reduce the VAT you pay in some situations.
  • Retail schemes – These apply to retailers and offer an alternative if it’s not practical to issue invoices for a large number of supplies direct to the public.