Vat Accountant
VAT accountants support your business through periodic VAT returns and registration
Value Added Tax (VAT) is a tax levied on the purchase and sale of certain goods and services. Businesses that are registered for VAT must pay over any VAT due to HMRC on a periodic basis. Typically this is done quarterly, and returns will need to be produced on this basis.
A business needs to register for VAT if its annual turnover is more than (or expected to be more than) £85,000. In some cases, businesses may choose to register for VAT voluntarily before they reach the threshold as it could be beneficial to their operations.
As your VAT accountant, we will ensure these returns are produced accurately and timely to avoid any penalties and fines that HMRC may issue upon incorrect and late returns. Our expertise and knowledge allow us to analyse your records and make sure that you have claimed necessary expenses and allowances to reduce your liability where possible; whilst still complying with governing rules and regulations.
- Efficient Returns
- Reduced Liability
- Registration Support
- Bookkeeping
Rates of VAT
Different rates of VAT apply for various products and services, which can make calculating your returns that much more difficult. The rules and regulations around VAT are ever-changing; not to mention the increasing compliance of Making Tax Digital (MTD). A VAT accountant can help you understand your responsibilities and make sure you remain compliant.
Some services are outside the scope of VAT and are considered zero-rated, such as postage, children’s clothes, or newspapers.
- 20% Standard Rate (most goods and services)
- 5% Reduced Rate (energy, protecting products)
- 0% Zero Rated (health products, children's clothing)
VAT Registration Services
The VAT threshold (currently sitting at £85,000 for 2022) is a turnover-based threshold where a business must register for VAT if they hit that limit, or expect to hit it within the current financial year. Depending on how a company operates, it may be beneficial for them to voluntarily register for VAT before they hit the threshold.
Our VAT registration services start by analysing your business and its financials to determine whether or not you need to register. If you do, we will then need to choose the appropriate scheme that suits you. As the rules and regulations around Value Added Tax are constantly changing, it is important that you get this right.
Not only can our team of expert VAT accountants help advise you on the best course of action, but can also take care of the entire process for you. We will register your business with the appropriate bodies and inform you of any responsibilities that you must abide by. Giving you peace of mind and one less thing to worry about.
Making Tax Digital
In recent years Making Tax Digital (MTD) has become an important part of taxes. Businesses are now required to store their records on electronic systems and produce their VAT returns through digital compliant software.
As a small business, this can often come as a costly expense. Our team is well-versed in the latest accounting software and can set your business up on our secure system, ensuring you are complying with the latest MTD rules. We will produce and file your returns using this software on a periodic basis. In addition to providing you with expertly, tailored, VAT advice and assistance.
You must submit a VAT Return to HM Revenue and Customs (HMRC) every 3 months. This is known as your 'accounting period.' The VAT Return records items such as your total sales and purchases for the accounting period.
If you are late in filing a VAT return or making a payment to HMRC, you will enter into a 12-month probationary period known as a 'surcharge period.' If you file any further late returns during this period, you will incur a penalty and the surcharge period will be reset for a further 12 months. Penalties will increase the more instances you are late and the 'surcharge period' will continue to extend.
