VAT accountants

Benefits of Being VAT Registered

Being VAT registered can bring many benefits to a business. Firstly it allows businesses to reclaim VAT on their purchases which can help reduce their costs. Secondly it can give the impression of a professional business and trustworthiness. Thirdly it can help with cash flow as prices will be 20% higher and VAT can be claimed back on costs. Finally it can give an opportunity to review and improve business processes leading to increased efficiency and productivity. A specialist VAT accountant can help businesses maximise these benefits by providing expert guidance and managing VAT processes efficiently.

VAT Registration and Exemptions

VAT registration is mandatory for businesses with a taxable turnover above the threshold (£85,000). However businesses with a taxable turnover below the threshold can voluntarily register for VAT. VAT exempt businesses do not need to register for VAT and cannot reclaim VAT on their purchases. Examples of VAT exempt businesses include healthcare services, education and training, insurance and some financial services.

VAT Liability and Payment

VAT liability arises when a VAT registered business makes taxable supplies. The business must charge VAT on these supplies and pay the VAT to HMRC. The deadline for paying VAT is one calendar month and 7 days after the end of the 3 month accounting period. Businesses must also submit a VAT return by the same deadline to comply with HMRC. A VAT accountant can help businesses manage their VAT liability and ensure they meet the payment deadline.

VAT Returns and Accounting

VAT returns are a crucial part of VAT compliance and accurate accounting is essential to avoid penalties. A VAT return is a document that shows the amount of VAT a business owes to HMRC or the amount of VAT that HMRC owes to the business. VAT registered businesses must submit VAT returns every 3 months and the deadline for submission is usually one calendar month and 7 days after the end of the accounting period.

To ensure accurate VAT accounting businesses must keep detailed records of all transactions including sales, purchases and expenses. This includes keeping records of VAT invoices, receipts and bank statements. Businesses can use accounting software to help with VAT accounting and comply with VAT regulations.

VAT Schemes and Options

There are several VAT schemes and options available to businesses and choosing the right one can help minimise VAT liability and maximise cash flow. The most common VAT schemes are:

• Standard VAT scheme: This is the most common VAT scheme and businesses must charge VAT on sales and claim VAT on purchases.
• Flat Rate VAT scheme: This scheme is suitable for businesses with a VAT taxable turnover of £150,000 or less. Businesses pay a flat rate of VAT on sales and cannot claim VAT on purchases.
• Cash Accounting scheme: This scheme is suitable for businesses with a turnover of £1.35 million or less. Businesses pay VAT on sales when they receive payment and claim VAT on purchases when they make payment.

Businesses can also choose to register for VAT voluntarily even if their turnover is below the threshold. This can be beneficial for businesses that want to reclaim VAt on their business expenses.

Expert VAT Accounting Services

Expert VAT accounting services can help businesses navigate the complexities of VAT compliance and ensure accurate accounting. Specialist VAT accountants can provide advice on VAT regulations, help with VAT registration and assist with submitting VAT returns.VAT accountants can also help businesses choose the right VAT scheme and ensure compliance with VAT regulations. They can provide guidance on VAT exempt goods and services, VAT registered businesses and VAT responsibilities.

VAT Compliance and Penalties

VAT compliance is essential to avoid penalties and fines. Businesses must ensure they are registered for VAT if their turnover is above the threshold and they must submit VAT returns on time. Failure to comply with VAT regulations can result in penalties, fines and even prosecution.

Businesses can avoid penalties by ensuring accurate VAT accounting, submitting VAT returns on time and paying VAT liabilities promptly. Specialist VAT accountants can help businesses navigate the complexities of VAT compliance and ensure accurate accounting.

Making Tax Digital for VAT (MTD)

Making Tax Digital (MTD) is a UK government initiative that requires businesses to keep digital records and submit VAT returns electronically. MTD is designed to improve tax compliance and reduce errors in VAT returns.

Businesses that are required to use MTD must use compatible software to keep digital records and submit VAT returns. Specialist VAT accountants can help businesses navigate the complexities of MTD and ensure compliance with VAT regulations.

VAT Compliance and Specialist VAT Advice

VAT is one of the most complex and onerous tax regimes imposed on business. So complex that many businesses inadvertently overpay or underpay VAT. This is where the expertise of VAT accountants can be invaluable to ensure accurate reporting and payments. It is crucial to submit VAT returns accurately and on time to avoid penalties and ensure compliance.

The ever widening scope of VAT, the constant stream of detailed changes to the regulations and the ever growing demands of HMRC call for a trained professional eye to ensure that you do not fall foul of the regulations and do not pay the Exchequer more than you need to! Understanding VAT regulations and responsibilities is essential for maintaining compliance and avoiding costly mistakes.

Why Choose us?

At Thomas Barrie & Co. we offer an efficient cost effective VAT accountants service which includes:

• VAT registration
• VAT planning and administration
• Use of the most appropriate scheme
• VAT control and reconciliation
• Help with completing VAT returns
• Planning to minimise future problems with HMRC
• Negotiating with HMRC in disputes and representing you at VAT tribunals
• VAT group setup and management
• Expert VAT advice and tailored VAT accountants servicesPick the right VAT scheme and simplify VAT and financial management. Our VAT services will get you VAT compliant and error free.

Contact our VAT accountants today for a VAT healthcheck.