VAT Accounting
VAT Accounting
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 £90000 (2024-2025) in last 12 month period or business is expecting the turnover to reach £90000 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.
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.
- Annual Accounting Scheme
- Cash Accounting Scheme
- Flat Rate 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 020 45157294 or using the contact us form.