Managing VAT

Value Added Tax (VAT) is a tax levied by the Government that businesses must collect via sales of their products and services. Companies with an annual turnover that exceeds the VAT registration limit must register for VAT, only thirty days is given to do this once the threshold is exceeded.

All other companies can choose to become VAT registered if they think it will benefit their business growth.

Once you are VAT registered, you need to charge VAT on all sales, all invoices must clearly state the cost of the product or service and then the amount of VAT added.  Three different VAT rates are currently available to businesses in the UK, standard rate, reduced rate and zero rate.

There are different types of VAT schemes available for businesses, we will work with you to choose the best VAT scheme which will minimise your tax liabilities.

  • VAT annual accounting scheme
  • VAT cash accounting scheme
  • VAT Flat rate scheme
  • VAT margin scheme
  • VAT retail scheme


Why choose Watson Knipe?

When you start your business, it is essential to understand how VAT works and whether you should be VAT registered or not. We take the time to understand your business goals and advise you on the best approach to take regarding VAT registration.

When you are VAT registered you need to keep a record of all sales and expenditures and submit a VAT return every quarter. If VAT on sales exceeds VAT paid on expenditures then, you need to make a payment to the HMRC for the difference.

Our VAT compliance and planning services can help you by:

  • Advising you on whether you should be VAT-registered or not
  • Advice on the VAT rate and the best scheme for your business
  • Submitting your VAT returns on time to avoid penalties.
  • Ensuring you understand VAT rules for imports and exports
  • Support you if you have a VAT control visit by Customs and Excise

 

We work with businesses based in Derby, Nottingham, Leicester and across the UK. If you are interested in finding out more about the different VAT schemes or need support with VAT returns, please contact us by calling 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..