VAT Accounting

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What is VAT?

Also known as, Value Added Tax is a type of consumption tax which is added to the purchases of goods or services and other “taxable supplies”.
As a VAT registered business, you are required to add 20% to the selling price of your goods or services. However, VAT rates varies depending on the type of business e.g food items are zero-rated and no VAT is charged on food items. Click here for more information on VAT rates.

When do I need to register for VAT?

A business must register for VAT, if the turnover has reached £85000 (2019-20) in last 12 month period or business is expecting the turnover to reach £85000 in next 30 days period. Click here for more information on VAT registration.

Following are the thresholds for registering for VAT or joining a VAT accounting scheme from 1 April 2017.

VAT Thresholds

CircumstanceThreshold
VAT registrationMore than £85,000
Registration for distance selling into the UKMore than £70,000
Registration for bringing goods into the UK from the EUMore than £85,000
De-registration thresholdLess than £83,000
Completing simplified EC Sales List£106,500 or less and supplies to EU countries of £11,000 or less

Click here for more information on VAT Thresholds & VAT Accounting Schemes.

Who needs to register for VAT?

Any business (Sole Trader or Limited Company) that exceeds the threshold for VAT must register for a VAT Accounting Scheme.

However, you may register for VAT even if you do not reach the threshold. Some businesses believe that having a VAT registration will improve the credibility of the business.

What we do to help you with VAT?

We help our clients to register and prepare & submit VAT Returns as well as we advise them in the rule and regulations relating to the VAT.

Our VAT services include:

  • VAT Registration
  • VAT Bookkeeping
  • Appropriate VAT Accounting Scheme
  • Prepare & Submit Quarterly VAT Returns
  • VAT Planning & Advice
  • Dealing with HMRC for any matters related to VAT
  • Use of best Making Tax Digital (MTD) Software

For more information on VAT Accounting, please contact us on 01753 316048 or using the contact us form.