Whether you are starting a new business or are an established company, it is essential to know your position in relation to VAT. Here at J&H Accountants, we provide the professional advice you need to make an informed decision on the right time for your business to register for VAT. Our qualified accountants can also offer expert advice on the different VAT schemes available and prepare and file your VAT return digitally and directly with HM Revenue & Customs.
VAT registered businesses act as unpaid tax collectors and are required to account both promptly and accurately for all the Value Added Tax (VAT) they collect.
Businesses charge VAT on their sales. This is known as output VAT and the sales are referred to as outputs. Similarly VAT will be payable on most goods and services purchased by the business. This is known as input VAT. The output VAT is being collected from the customer by the business on behalf of HMRC and must be regularly paid over to them. However the input VAT suffered on most (but not all) goods and services purchased for the business can be deducted from the amount of output tax owed to HMRC. If your input tax is greater than your output tax, HMRC will owe you a refund.
There are strict penalties for errors in the VAT Returns; therefore, hiring the services of an accounting firm is essential.
What is VAT and does it apply to me?
Registering for UK VAT (Value Added Tax) is a fairly straightforward process. But to determine if, at all, you need to register for UK VAT, you will firstly need to understand the complicated UK VAT rules. Different rules apply to the supply of goods and services and the rules for determining the place of supply for services are more complicated. In order to determine whether or not you need to register, the main things to consider are a) whether the supplies are ‘taxable supplies’, b) whether the place of supply is the UK and c) if you have exceeded the VAT registration threshold.
Whilst there is no requirement to register for VAT until your income goes beyond the stated threshold, it can sometimes be advantageous for a company to register for VAT from the outset. Where it is advisable to wait, we will monitor your situation and notify you at the point at which VAT registration is required. Our experienced tax accountants can facilitate the process by taking care of all the paperwork for you.
How do you know when your VAT returns are due?
We’ll send you a reminder, informing you of the due date for your VAT return and requesting your bookkeeping records. We will prepare your VAT return and once complete and with your permission, we will submit to HMRC on your behalf, ensuring a stress-free process from start to finish.
Our Expert VAT Return Service
J & H Accountants can support you in your VAT return calculations and formulations. Our highly qualified accountants can deal with even the most complex situations.
J & H Accountants
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We are ready to speak to you about your business needs. We will guide you through the VAT return process from start to finish, helping you get on with running your business.