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
| Circumstance | Threshold |
|---|---|
| VAT registration | More than £85,000 |
| Registration for distance selling into the UK | More than £70,000 |
| Registration for bringing goods into the UK from the EU | More than £85,000 |
| De-registration threshold | Less 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.