VAT Return Services

VAT Return Services
VAT Return Services
  1. Value Added Tax (VAT) is a tax you pay on a range of goods and services. 

VAT in the UK is typically charged at:

  • 20% on goods and services
  • 5% on some health, energy, heating, and protective products and services
  • 0% is applied on a range of products and services to do with health, building, and kids’ clothing
  • Exempt items are outside the scope of VAT. 

Why register for VAT?

Deciding whether to register  for VAT and when is a very key decision for any business. Businesses must register for VAT within 30 days if turnover exceeds £85,000 in the previous 12 months or if the turnover is expected to exceed £85,000 in the following 30 days. The business must notify HMRC within 30 days of the date the threshold is expected to be exceeded.

Businesses can also voluntarily register even if their turnover level is below £85,000.

Why register for VAT voluntarily?

  1. Boosting your business profile – Voluntary registration gives the impression to competitors, suppliers and buyers that the business has a turnover in excess of £85,000 and therefore bigger and more successful than it currently may be. All registered VAT businesses will be provide with a unique VAT registration number. 
  2. Avoiding Financial penalties – It is critical that penalties are not imposed by HMRC for having exceeded the VAT turnover registration level prior to registration. As such, some businesses will voluntarily register some months prior to reaching the threshold. 
  3. Easing business dealings – A number of suppliers and organisations are unwilling to do business with with companies and SME’s that are not VAT registered.
  4. VAT refunds – another advantage of voluntary VAT registration is the ability to claim VAT on goods and services. Depending on the mix of products bought and sold, it may be the case that VAT refunds are due to the business and therefore VAT registration is made voluntarily. 

Why use Accurus for VAT registration and preparing VAT returns?

Initially we advice on whether to register voluntarily and on getting registered when you are approaching the VAT threshold limit. We 

We have a team of Tax and VAT specialists that will advise you from day one. We have specialists with VAT sector specific knowledge to ensure you get the right advice.  We will deal with all aspects of registration, responding to any correspondence from HMRC, preparing and filing VAT returns, dealing with queries and most importantly keeping up with the complexities of VAT regulation. 

We will advise you on preparing the VAT return, explaining the VAT liability, review key indicators with previous returns and complete your VAT return on time every time.

Some of the VAT Schemes we specialise in

Flat Rate VAT Scheme

The flat rate VAT scheme is designed to help small businesses reduce the amount of time they spend accounting for VAT. Using the flat rate scheme, you do not have to calculate the VAT on every single transaction. Instead, you simply pay a flat rate percentage of your turnover as VAT. The percentage is less than the standard VAT rate because it takes into account the fact that you are not reclaiming VAT on your purchases.

There are a range of flat-rate percentages – the one you use depends on your trading sector. Although the flat rate scheme can reduce your paperwork, one downside is that you cannot reclaim VAT on your purchases. If you buy a lot of goods and services from VAT registered business, you could end up paying more VAT. Also, if you make a lot of zero-rated or exempt sales, you could end up paying more VAT because you will still be liable to pay the flat rate percentage on your turnover for those sales, even though you are not charging VAT on those sales.

Flat rate schemes are therefore useful for service-orientated industries such as Consultants, contractors etc or businesses with very small number of vatable purchases.

Standard VAT Accounting

Standard VAT accounting is the most common scheme and it allows you to reclaim the full amount of VAT you may have had to pay on your purchases. You will pay or reclaim the net of the VAT that you have charged your customers and the VAT that you have had to pay on your purchases.

This means that your VAT calculations will be based on your raised invoice rather than the date the invoice was paid.

This could have a negative effect on your business cash flow since you must pay VAT over to HMRC for services or goods sold, which you have not yet received the money for.

If, on the other hand, you have not paid for goods purchased, you can claim the VAT on the invoice received, resulting in a positive impact on your cash flow.

Cash VAT accounting

With the Cash Accounting Scheme, you pay VAT on your sales when your customers pay you or you reclaim VAT on your purchases when you have paid your supplier.

Cash accounting can be beneficial for your cash flow especially if your customers are slow to pay. It is even more useful if you have bad debts. Using the cash accounting scheme, you do not pay VAT if your customer never pays you.

fall in love with our SERVICE offerings

VAT Return Services

Real time stats

We can provide the software and bookkeeping to ensure that we are able to provide real time stats to aid effective decision making. This can include regular management accounts, Key performance reporting, cashflow reporting and risk management.

VAT Return Services

Compliance - we got it sorted

Compliance is a statutory requirement and therefore very important to get it right. Once you are a client, rest assured we take care of your compliance arrangements.

Amazingly Responsive

Whether you wish to discuss any area of your business, give us a call and one of our qualified accountants will deal with the issue or provide the advice you need to move forward.

Cloud accounting

We are cloud accounting experts and will set up your accounting system, provide adequate training and implement other tech solutions for your business/sector to ensure you reduce the time spent previously on keeping your books.

Community builder

We like to think of our clients as a network and will regularly introduce clients who may be helpful to others for mutual benefit.

Bespoke offerings

We are able to provide a bespoke service to each client dependant on their needs. From full bookkeeping services, to managed service levels to a fully outsourced finance function. We can help you.

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  • poor client service
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  • information is not understood?

Switching is easy, contact us to discuss further.