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VAT can be very confusing and there are several options you need to consider. For example, you have to make a choice between Accrual Accounting, Cash Accounting, or Flat Rate Scheme. If you are unsure about which will be the best option for your company to take, or even whether you should register for VAT in the first place, hire the expertise of Bells Accountants in Kent to guide you through the minefield.
VAT – WHAT YOU NEED TO KNOW
- You are required to register for VAT if your total sales for the previous twelve months (or since you began trading) exceed a certain amount. Find out up-to-date information regarding the current figures from GOV.UK.
- Once this has occurred, you are legally obliged to inform HMRC within 30 days from the end of the month in which your turnover exceeded this amount. You will then normally be registered for VAT from the first day of the following month.
- You may need to register for VAT if you are close to the threshold and it’s likely that your turnover will exceed that threshold over the next couple of months.
- You can voluntarily register at any time with HMRC for VAT even if your turnover has not yet reached the threshold. We can advise you as to whether this is the best policy for your business.
VAT – WHAT WE CAN DO TO HELP YOU
We have a wealth of experience in dealing with all aspects of company finance including, of course, VAT. We can offer the very best in advice when it comes to your VAT obligations, and we can help you complete your returns or even complete and submit your returns for you. We will let you know which VAT scheme will best benefit your business, and how to make the most of the tax breaks and exemptions that are available to you.
If you engage our complete bookkeeping services we can take over all of your VAT obligations and requirements.
If you have any questions concerning VAT or the VAT-related services we can offer you at Bells Accountants, then we would be more than happy to answer them for you. Find your nearest practice HERE or email us at .
FAQS ON VAT
Q: How does it work?
A: Standard VAT works by adding up all the VAT you have charged on your sales (20% on top of your net fees), deducting all the VAT you have paid out to your suppliers, and handing over the difference to HMRC. This information is usually reported to HMRC on a quarterly basis by completing a VAT return. There are different schemes available, such as the Flat Rate Scheme, which can help save you money, but speak to us about the different options and we will help you decide which is best for your business.
Q: Do I have to register for VAT?
A: The current compulsory threshold for VAT registration can be found at GOV.UK. If your turnover in the last 12 months is over this figure, or it is likely to go over in the next twelve months, you will need to think about registering your business for VAT. We can advise you on the whole process and help you decide which VAT scheme to choose, to save you the most money. It may even be worth registering for VAT voluntarily, as for some businesses this means they can claim back considerable amounts of VAT they have paid out or even make additional profits from charging VAT to their customers and paying it over at a lower rate.
Q: Are there any exemptions?
A: There are some exemptions available for some trades, but you need to be very careful not to misunderstand the guidance available from HMRC. There are hefty penalties for those who get it wrong despite this area being a minefield of information. Find out more from the government.