Do you own a limited company in the UK? Do you have a turnover of more than £85,000? If yes, then you must register for VAT with the HM Revenue & Customs (HMRC). The way this is calculated is on a rolling 12 month period and can be quite complex. So don’t hesitate to contact us to see if we can help support you in this transition.
What is VAT?
VAT is a sales tax which is placed on most products and services bought and sold in the UK & European Union. A lot of products and services are at a standard VAT rate. This is currently 20%, and some a reduced rate of 5. Others are Zero Rated or Exempt.
A VAT return is the amount that is due on sales you make minus the amount that is reclaimable on goods or services you purchase . The result is the amount payable to the HM Revenue & Customs. So, if the reclaimable amount on purchases is higher than the sales amount, then the HMRC will give you the difference back.
What do I need to do?
If you are VAT registered, you must keep records of all sales and purchases. This is to show the VAT owed and re-claimed. These can be kept physically in binders etc or digitally on the cloud. However, you must submit your VAT return via accounting software since the introduction of Making Tax Digital in 2018/19.
What do you do?
We will make sure that you are on the right scheme. One that suits your business and ensure you don’t pay more than you need to within the bounds of the law. Especially on contentious items like motor running cost and mixed used expenditure. We will keep a check on your returns to make sure that you are not missing out on reclaims that can be made. Or advise if you are trying to reclaim VAT on items that you can not reclaim on (which could otherwise leave you in hot water with HMRC).
Why Brighter Futures Accountancy?
We use Receipt-Bank to help you quickly and easily capture all the details of your purchases. Whether it is your suppliers emailing invoices direct, or you snapping a picture of a receipt from your smart phone. This information then gets pushed through to Quickbooks or Xero. The picture of the document is attached to the transaction, so no more endlessly searching through binders.
We have VAT registered clients across the spectrum of retail, leisure, digital tech, automotive, construction and professional services. So we know what to look out for and what can come up in your industry.
So, if you’re looking for a trusted, experienced and a reliable accountant to help you with VAT returns, then get in touch with us today. We can provide you with invaluable advice and services that will benefit you in the long run.