VAT is value added tax, which is charged on most goods and services within the UK and EU. Currently, there are three tax rates of VAT:
As well as these three above VAT rates, certain goods and services can also be exempt, or outside the scope of VAT.
There are several reasons why you should consider registering for VAT:
You can complete VAT registration online or, as your accountants, we can do it for you.
The online application will ask you several questions about your business, as well as future trading expectations, and whether you want to register for standard or or flat rate VAT.
Usually you submit a VAT HMRC every three months. This period is your accounting period.
Your VAT return records consists of:
You must submit a VAT return even if you have no VAT to pay or reclaim.
You must submit it, along with any VAT tax payable, by one month and seven days following the accounting period.
For example, if your VAT return covers the period January 1 to March 31, the VAT return and payment must reach HMRC on or before May 7.
If you are late in doing this, you may end up with a penalty or surcharge.
The easiest way to pay your VAT and to ensure payments are never late is to set up a direct debit via your online VAT account.
We can do this for you, acting as your agent.
If you don’t have a Direct Debit set up, there are alternative methods of payment shown here.
HMRC will record a default if you fail to submit your VAT return by the deadline, or fail to pay any VAT due by the due date.
Once you default you will enter a 12-month default period.
If you default again during this time, HMRC extends your default period by a further 12 months.
After the first default, you will also be liable to the following surcharges per default.
If your annual turnover is LESS than £150,000:
If your annual turnover is MORE than £150,000:
This may seem complex, but with our help, we’ll make sure you’re managing your VAT properly.
Using Xero software, we can help you manage your VAT:
We’re here to make sure that you’re VAT-compliant, and that you’re reclaiming everything you should.
It’s that straightforward.
Operating from our London head office, Venn Accounts a traditional accounting firm. We are committed to ensuring all our clients are completely clear about what we can do for them, while fully supporting them every step of the way.
Contact us and speak to a member of our team about our annual account service.