VAT

The VAT Flat Rate scheme is available to businesses with turnover up to £150,000 per annum. It is advantageous to small businesses as the VAT payable to HMRC is calculated as a percentage of gross sales rather than 20% of net sales less 20% of VATable purchases. It makes calculating VAT due much more straightforward, record keeping is easier AND you are likely to pay less. Always an advantage!…

VAT records must be kept  for six years although HMRC are only allowed to adjust returns going back four years plus the current period.  However if you have purchased land or buildings you may need to keep relevant documents for 20 years.   But what VAT records do you need to keep?…

Finally the month for submission of VAT returns via MTD arrived and we survived. Months and months of talking about it, reading about it and watching webinars. Then we just had to get on with it. …

Whilst we are still part of the EU VAT registered businesses which supply goods to a customer in a EU country must charge VAT at the standard UK rate.  However if that customer is VAT registered, as long as they provide you with their VAT number you can…

Some businesses do not want to become VAT registered because they think it is too complicated to do VAT returns.  It is quite straightforward especially now that VAT returns can be submitted directly from your accounts software. Here are some tips for keeping VAT simple and getting it right.…

One of my clients asked me last week if they still needed to be VAT registered. Their business has changed now they no longer have an employee to help them.  So I took some time this morning to calculate whether they would be better off de-registering for VAT.  There are a number of factors to take into account when doing this…

Whether you are a new business or an established business it is always worth putting some thought into when is the right time to become VAT registered. New business owners often think that they have to become VAT registered…

All growing businesses will become VAT registered. It is not daunting. You just need to become organised with your record keeping and remember your VAT return deadlines. So what should you know about becoming VAT registered? …

From April 2019 VAT registered businesses who have a turnover over the VAT registration threshold (currently £85,000) must use accounting software to file their VAT returns.  If your turnover is over £85,000 you will no longer be able to use the Government Gateway to file a return.  The only businesses which will be exempt from complying with this regulation …

It has been about 5 years since one of my clients had a visit from a VAT inspector. It always comes as a bit of a shock when they do want to arrange a visit especially as I was just about to go on holiday and they wanted the visit the week I got back!  There is, of course, always concern that they have a specific reason for visiting which they are not going to tell you about until they arrive!  This VAT inspection was with a business which hasn't had a visit for almost 20 years even though it has quite a complex VAT situation.  …