With the ever changing tax regulations surrounding VAT, we ease the pressure off business owners by advising on the best VAT scheme suitable to them, we will help the business with VAT registration, carry out VAT analysis and control and submission to HMRC using appropriate MTD suitable software.
It is imperative to note that businesses with an annual gross sales of £85,000 are required to register for VAT and charge VAT on top of their Net Sales. VAT registered businesses are then required to submit VAT quarterly but can also opt for monthly option. Quarterly return payments must be paid by the 7th of the month, a month following the end of the quarter submitted. We also know that keeping up with VAT payments, can be an issue and we can advise on the best financial planning to avoid getting any problems with HMRC.
Some businesses that do not fulfil the £85,000 annual gross sales threshold can still register for VAT as there are benefits to them for doing this. Usually start up’s would do this as they usually are spending more than they are generating initially until the business picks up. The advantage is that you can claim back VAT suffered on purchases which is a great addition to cashflow.
In the UK, the typical VAT rate is 20% for most businesses but differs for some industries.